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Fed Terminal Back At Pre-PMI Beat Levels After Bullard

STIR
  • Nothing materially new from Bullard on CNBC - unsurprising seeing as he last spoke on Thursday - but the FOMC-dated OIS terminal is drifting lower.
  • It hits lows for the day at 5.33%, at levels from before yesterday’s PMI beat having closed at 5.37%.
One of the more pertinent remarks was we have a good shot at beating inflation in 2023 (vs prior comments that hoping to get disinflationary process going in 2023). Others very similar to last Thursday: still sees peak rate in 5.25-5.5% range, US economy stronger than we thought and markets may be over-pricing US recession risk.

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