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Fed Rate Path Edges Lower In Search Of New Drivers

STIR FUTURES
  • Fed Funds implied hikes have drifted further lower overnight off yesterday’s post-Williams high of 5.18%, back at late Mon/early Tue levels but still ~20bps above pre-payrolls levels.
  • 25.5bp for Mar (-0.5bp), cumulative 44bp for May (-0.5bp), 53bp to 5.12% terminal in July (-1bp) before 31bps of cuts to 4.79% in Dec (-1bp).
  • Little new drivers for the move although BOE pricing also trending lower on the day, before a thin docket ahead with no Fedspeak scheduled.

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