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Hike Pricing Pulls Back Post-ISM

STIR

Rate hike pricing pulled back further following the weak US ISM services reading, though is bouncing somewhat: May FOMC pricing fell to just 8bp, though has retraced most of that and back to 10.6bp.

  • 94bp of cuts are currently seen by year-end.
  • In Europe, May hike pricing remains fairly steady with a good chance of 25bp raises, but ECB terminal Depo rate pricing has fallen 8.5bp on the day to 3.44%; BoE Bank Rate by 1.1bp to 4.61%.

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