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Limited Impact From Daly Comments

FED
  • Limited market reaction to SF Fed’s Daly (non-voter) prepared remarks advising some caution after March liftoff, which she backed absent a significant negative surprise.
  • Headlines are broadly similar to an interview she gave last week in which she repeated the next steps of the rate path will be data dependent.
  • Fed Funds price 35.5bps for Mar 16 and 162bps for 2022 (down 0.5/1bp), with comments on Monday from Fed Board Governor Bowman being open to either a 25bp or 50bp hike depending on upcoming data seemingly setting the tone for repricing in larger hikes along with higher yields more generally (Dec pricing was 147-148bps on Monday).

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