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Latest WSJ Steer Has Little Impact

STIR FUTURES
  • Little impact so far from the latest steer from WSJ’s Timiraos over the weekend that Fed officials are preparing to hike 75bps on Jul 27, with hikes implied by Fed Funds futures unchanged from after Friday’s U.Mich 5-10Y inflation expectations surprisingly dipping from 3.1% to 2.8% in the preliminary July print.
  • Sitting at 80bps for next week, 143bps for Sep and 195bps for Dec (four meetings). That’s on the way to 199bp of hikes to a current peak of 3.57% at the Feb 1 FOMC with 55bps of cuts to end-2023.

Source: Bloomberg

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