### POV, FI markets have been pricing in a......>

FED: ### POV, FI markets have been pricing in a hike at this week's FOMC policy

annc for over a month now, dealers widely in-line, with most falling in line

with a fourth .25bp hike at the December 18-19 meeting. Forward projections and

DOT plots opinions are getting more interesting. See 10:45 main wire post for

more on MNI interview w/former Atlanta Fed President Dennis Lockhart's insight

on what Powell and co. may discuss w/emphasis on the neutral policy rate.

- With Vice Chair Richard Clarida's addition to the Board in September, don't

expect to see any significant deviation from the mean at the SEP/Dot plot press

conference (1430ET Wed). Re Clarida, RBS notes "whether the median shifts up or

down could depend on where Clarida sees the neutral rate." 

- Large option flows noted last couple wks in US and short Sterling, '19

quarterly targets (Mar, Jun and Sep). March option expirys coincide not only

w/US and UK central bank policy meets, but w/timing of Brexit on Mar 29 (two yrs

after triggering Article 50 divorce procedure between UK and EU). Short March

Eurodollar options expire Fri before FOMC on Wed, March 20 (SEP included), short

Sterling opts expire day before BoE's policy meet on Thu, March 21.