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Post-PPI, Jobless Data React

US TSY FUTURES

Tsys reverse support, gap lower as PPI and Jobless both indicate strength and inflation, but Philly Fed at -24.3 has only been lower in covid spike and the global financial crisis. Yield curves steeper with short end outperforming for now: 2s10s +1.349 at -82.082.

  • Fed funds implied hike for Mar'23 steady at 26.1bp, May'23 cumulative steady at 46.0bp to 5.042%, Jun'23 60.0bp (+.7bp) to 5.182%, terminal holds at 5.22% in Aug'23.

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