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Fed Rates A Little Off Session Highs Pre McCarthy Conference, Waller Remarks

STIR
  • FOMC-dated OIS implied rates have cooled slightly from early session highs and similar to levels as US desks came in, as we await further debt talk headlines with a McCarthy press conference at 1145ET following by a meeting of debt negotiators at the White House from 1200ET.
  • Gov Waller (voter) also shortly gives long-awaited remarks at 1210ET with text + Q&A followed by the FOMC minutes at 1400ET. He last spoke on mon pol Apr 14 (need to tighten further with extent to hinge on incoming data, need to remain tight for substantial period).
  • Cumulative moves from 5.08% effective: +9bp Jun (+1.5bp on the day), +15.5bp Jul (+3.5bp), +7.5bp Sep (+5bp), -11bp Nov (+6bp), -31bp Dec (+5bp) and -51bp Jan (+9bp).

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