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Light Dovish Repricing Seen Post-CPI

STIR

FOMC-dated OIS sees a bit of a dovish repricing in lieu of the previously covered CPI dataset, with only ~2bp of tightening now showing for tomorrow’s meeting (vs. the ~6bp we flagged pre-data), while cumulative tightening through July now shows around 17bp (vs. ~21.5bp pre-data). Beyond that, ~24bp of cuts is now priced by year end vs. current terminal (vs. ~23bp observed ahead of the data).

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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