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Pricing 27bps For March

STIR FUTURES
  • Fed Funds futures pricing for the Mar meeting has slipped from 30bps prior to recent Fedspeak to 27bps.
  • It moved lower after Mester reinforced her view that 50bp liftoff isn’t compelling and instead would prefer 25bp with further increases in coming months.
  • As for Eurodollars, whites remain close to session highs but reds and especially greens onwards have pulled back significantly from early today, with Dec greens only 3.5 ticks higher on the day having been 14 ticks lower this morning, leaving implied yields similar to that after the last month’s FOMC.

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