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Fed Rate Path Slides With Circa 50bp Cuts By July, 100bp By Year-End

STIR FUTURES
  • Fed Funds implied rates have slumped in recent trading in an intensification of a move that started with the European opens as banks slide.
  • There is now just a 7bp hike priced for the May FOMC (-3bp) with two cuts priced for July from current levels (-49bps for -20bp on the day) and 106bp of cuts from current levels to 3.73% by year-end (-27bps).


Source: Bloomberg

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