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Fed Rate Path Holds Yesterday's Increased Inversion

STIR FUTURES
  • Fed Funds implied hikes hold yesterday’s drift lower as the terminal remains above the pre-payrolls recent low but inversion to end-2023 slowly builds to almost 50bps of cuts.
  • 51bp for Dec, cumulative 87bp to 4.71% Feb’23, terminal 4.93% May’23 and 4.46% Dec’23.
  • A light US docket with only jobless claims. The Fed is in media blackout and the ECB also starts its quiet period today.

FOMC-dated Fed Funds implied ratesSource: Bloomberg

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