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Further Dip On Waller, Q&A Ahead

US EURODLR FUTURES
  • Eurodollars have been dragged lower by the Waller headlines, led by the front-end with EDZ2-EDH3 down circa 2 ticks for -8 ticks on the day (EDZ2 96.91).
  • It coincides with a further firming in Fed Funds implied hikes to a cumulative 137bps for Sep (+5bps from late Fri) and 189bps for year-end (+6bps), as it continues to unwind last week’s declines.
  • Little sign of flattening trade on the back of this, with TYU2 largely unchanged on the release at 119-21.
  • He's still going through the speech with focus on Beveridge curves, moderated Q&A ahead.

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