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Fed Rate Path Unwinds Festive Increase

STIR FUTURES
  • Fed Funds implied hikes have stepped lower through London hours, more notably so beyond the mid-year terminal as it unwinds a large part of the intra Christmas-NY increases.
  • Sitting at 32.5bps for Feb (-0.5bp from Fri), cumulative 50.5bp to 4.84% for Mar (-2bp), terminal 4.93% May/Jun (-3bp) and 4.50% for Dec (-9bp).
  • Minimal scheduled Fedspeak this week: FOMC minutes tomorrow with Barkin (’24) next on Fri.

FOMC-dated Fed Funds futures implied ratesSource: Bloomberg

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