July 22, 2022 14:22 GMT
- Fed Funds implied hikes still see a 75bp hike next week as largely locked in, only dipping 1bp on the release to 76bps (-2bp on the day).
- There are much larger declines further out though despite bouncing off the snap reaction, with 133bp to Sep (-7bps) and 175bp to Dec (-6bp on the PMI, -13.5bp on the day).
- That leaves a terminal now seen at 3.33%, from what had been seen at 3.69% after last week’s US CPI beat. Inversion builds slightly further with 57bp of cuts to end’23.