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Lower Peak Yields But For Longer

US EURODLR FUTURES
  • Eurodollars see a mixed day with late whites/front reds leading the way higher (+4.5 ticks) but with larger declines in the blue pack and beyond.
  • The pivot sees implied yields back to almost unchanged from after Powell last week at the front end (down as much as 15bps from highs just prior to the FOMC) but with less inversion thereafter.
  • Implied yields currently peak in EDM3 before ~25bp of inversion through to EDM4 at the 3.25% mark where they largely plateau.

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