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Near-Term Fed Hikes Hold Near Post Sep FOMC Highs

STIR FUTURES
  • Fed Funds implied hikes sit with 73.5bp for Nov 2, in the middle of the 72.5-75bp range so far this week.
  • The cumulative 130bps to 4.38% for Dec’22 is at post-Sep FOMC highs whilst 2023 rates consolidate yesterday’s easing, with a 4.67% terminal in Mar’23 and 4.36% for Dec’23.
  • FOMC minutes at 1400ET take centre stage for Fed commentary. Also have Kashkari (’23) in a townhall discussion on economic development, VC for Supervision Barr on new technologies and then late on Gov Bowman discussing forward guidance as a policy tool (text + Q&A). Bowman last spoke on mon pol on Aug 17.

FOMC-dated Fed Funds implied ratesSource: Bloomberg

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