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June Cut Odds Build Again, Cumulative 21bps

STIR
  • FOMC-dated OIS has pushed lower again with Powell's remarks and is now through initial levels after the announcement/SEP (before it pared some of the move ahead of the presser).
  • Showing cumulative cuts at 21bp for Jun (17.5bp pre-FOMC), 33bp Jul (28-29bp pre-FOMC) and 81-82bp Dec (73-74bp pre-FOMC).
  • As noted above, while Powell doesn't sound too enthusiastic on the prospect, he didn't categorically dismiss a potential cut in May or June, as he did with March cut back in the January press conference

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