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Post House Price Data React

US TSY FUTURES
  • Tsy futures show little reaction to slightly higher FHFA House Price Index MoM (0.6% vs. 0.5% est, 0.08% prior). Curves holding flatter (2Y10Y -5.477 at -21.666). Dec'23 10Y holding +2.5 at 106-09.5, yield 4.8477% (-.0465).
  • Projected rate hikes into early 2024 gain slightly: November steady at 0% to 5.325%, December cumulative of 6.8bp at 5.396%, January 2024 cumulative 9.4bp at 5.423%, March 2024 at 6.5bp at 5.393%. Fed terminal at 5.425% in Feb'24.

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