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Modest Lift In Cut Expectations On Powell Opening Remarks

STIR
  • FOMC-dated OIS implied rates have slipped 1-4.5bps for meetings out to Jun’24.
  • November now shows just +1bp priced, building to a cumulative +10bp to a terminal 5.43% for January (-2.5bp post initial remarks).
  • After sizeable reductions in cut expectations in recent weeks, cuts to Jun’24 build slightly to 26bps from 24bps pre-remarks.
  • Speech to shortly go ahead after protest disruption.

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