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New Highs For Fed Hikes In Next Two Meetings

STIR FUTURES
  • Fed hike pricing has firmed overnight back to 221bps to year-end in Fed Funds futures.
  • 47bps for May and a new high of 94bps for June as it grinds higher following the minutes on Wed showing “many” participants thinking “one or more” 50bp hikes would be appropriate at upcoming meetings if inflation pressures remained elevated.
  • The next test of that will be Tuesday’s CPI report for March. Only wholesale inventories/sales today.
  • No Fedspeak today. Four speakers scheduled for Monday, including two Governors, but three of the four are set to just give brief opening or closing remarks.

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