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Fed Terminal Holding Only Minor Push Higher Post Decision

STIR FUTURES
  • Fed Funds implied hikes holding only slightly higher with the dust settling on the FOMC announcement prior to the presser.
  • Eyeing a 21bp hike to 4.80% for the March meeting, whilst the terminal is holding just 1.5bps higher at ~4.935% for June, off earlier highs of 4.95%.
  • Broadly parallel shifts further out the curve with 4.49% for end-2023.


Terminal pricing for June meeting in Fed Funds (white) and OIS (yellow)Source: Bloomberg

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