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Fed Rate Path Continues Push Higher Pre-NFP

STIR
  • Fed Funds implied rates have pushed to fresh highs since the Dec 13 FOMC decision, rising between 0.5bp (Jan/Mar) and 4.5bp (Dec) from yesterday.
  • In part buoyed by some stronger labor indicators of recent days and ahead of today’s payrolls report, it leaves 17bp of cumulative cuts for March, 59bp for June and 134bp for December.
  • The latter marks a notable lift from the 160bp late last month.

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