Post-LIBOR Settle Update

Lead quarterly EDH2 remains under pressure at 99.2925 (-0.0175) after latest 3M LIBOR set' falls -0.04786 to 0.45857% after climbing +0.16743 total last wk -- to 0.50643%, highest lvl since May 4, 2020.

• Choppy trade as markets struggle to reprice in policy expectations after last week's post-CPI rush to price in higher/faster rate hikes -- not to mention hawkish comments from StL Fed Bullard and Richmond Fed Barkin that spurred early Friday pricing of 150bp hikes by year end.
  
• Geopol-risk and QE: FI markets surged late Friday when US officials warned Russia invasion of Ukraine as early as this week. NY Fed buy-operation annc tamped down chatter of intermeeting move/immediate end to QE (buy-ops end March 9). Asa result, short end scaled back early session hike expectations from 100% of 50bp liftoff in March to under 50% of 50bp move in late trade.
• StL Fed Bullard returns this morning on CNBC at 0830ET to address his stance. Policy uncertainty reigns: inversion has Red Sep'23 and Dec'23 trading 0.050 to 0.200 lower than Greens-Golds.