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Pre-FOMC Update

STIR
  • Heading into the FOMC decision, Fed Funds implied rates show a terminal 5.44% (+11bp) with the December decision.
  • It’s followed by 27bp of cuts from terminal to Jun’24 and 86bp of cuts from terminal to Dec’24.
  • The latter gives an implied effective rate of 4.58%, tallying with a 4.5-4.75% (i.e. 4.6%) end-2024 dot.

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