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Front Eurodollars Unwind Half Of Geopol Move

STIR
  • Front Eurodollars have partially retraced from highs following earlier headlines on the US deploying troops to Eastern Europe.
  • The initial reaction to the weak ADP print beforehand had been unwound but could have set the stage for the rally.
  • Whites remain up to 3.5 ticks higher on the day with little reaction further out along the curve.
  • Implied yields are modestly higher than shortly after the Fed last week through to EDZ3, after which the curve is largely flat and is very slightly inverted through EDH4-EDM4.
  • As for Fed Funds futures, they currently price 28bps for Mar and 118bps for Dec meetings.

Source: Bloomberg, MNI

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