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Post-LIBOR Settle Update: Offered Post-Germany Debt Increase

US EURODLR FUTURES

Lead quarterly Dec'22 (EDZ2) slips -0.010 to 94.870 after latest 3M LIBOR set' climbs +0.03471 to new 14Y high of 4.59200% (+0.04171/wk).

  • Slight pick-up in Fed funds implied hike for Dec (+0.5bp) to 57.6bp from 56.5bp earlier.
  • FI dipped last couple minutes on back of headline that Germany will more than double net debt next year -- balance of Whites (EDH3-EDU3) trades -0.025-0.010, Reds through Golds (EDZ3-EDU7) steady to +/-0.005, Greens outperforming.
  • Deferred calendar spd continue to bounce off deeper inverted levels: Mar'23/Jun'23 -0.035; Dec'22/Red Dec'23 at -0.045, Mar'23/Red Mar'24 at -0.545. Inversion flattens out in front half of Blues.

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