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June OIS Rates Slide As Jefferson Advocates For Skipping Hike

FED
  • June FOMC OIS pricing falls 5bps on Jefferson's remarks, back to lows of the day at an implied +12bp. July terminal pricing also down 5bps on them at 5.285%, I.e. 20.5bps of cumulative hikes from here.
  • Jefferson is currently a Governor (i.e. permanent voter) and is Biden's nominee for the vacant Vice Chair role.


Bloomberg headlines

  • SKIPPING HIKE WOULD ALLOW TIME TO ASSESS DATA
  • PAUSE AT A COMING MEETING DOESN'T MEAN RATES AT PEAK
  • HIGHER RATES COULD EXACERBATE BANKING STRESS
  • A YEAR NOT LONG ENOUGH TO FEEL FULL EFFECT OF HIKES

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