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FOMC Presser Retraces Most Of Statement Rate Path Climb

STIR FUTURES
  • Post Q&A, FOMC-dated OIS back to pricing 31-32bp for the Feb 1 FOMC, close to levels just prior to statement/SEP, having touched 36bps in the interim.
  • Terminal pulls back to ~4.85% for the May meeting vs post-statement peak 4.93% from 4.82% prior.
  • The reversal from appropriate thing to do is to move to a slower pace and getting close to the level that is sufficiently restrictive.

FOMC-dated OIS implied terminal rate for May'23 meetingSource: Bloomberg

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