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Front Rates Pause After Brainard

US EURODLR FUTURES
  • EDZ2 has pulled back 1 of the 2.5 tick increase seen prior to and then through most of Brainard’s hearing after she said late on that the Fed will be in a position to start hikes as soon as bond purchases end, i.e. March.
  • At 98.780, it’s back at levels seen yesterday post-CPI as it struggles to move materially lower.
  • There has been little reaction to Evans (2023) being aligned with the Dec median DOTS of 3 hikes this year.
  • Earlier Barkin (2024 voter) comments on hikes starting “as early as March” were largely repeated from Monday.
  • Waller (permanent voter) is now scheduled to also speak to Bloomberg TV at 1810ET.

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