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Fed Terminal Closes Back In On Post-Payrolls High

STIR FUTURES
  • Fed Funds implied hikes have climbed overnight, unwinding a sizeable portion of Friday’s paring of the post-payrolls increase.
  • 51bp for Dec (unch), 88bp to 4.72% for Feb’23 (+1bp), terminal 4.95% May’23 (+3.5bp) and 4.49% Dec’23 (+6.5bp).
  • The terminal nears the post-payrolls high of 4.96% but is still some way off the pre-Powell high of 5.06%.
  • No Fedspeak with media blackout leaves ISM services in focus.

FOMC-dated Fed Funds futures implied ratesSource: Bloomberg

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