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SLOOS Helps Trim Rate Cut Expectations

STIR
  • The SLOOS report has had little impact on pricing for near-term FOMC meetings (which are still seen with essentially an end to the hiking cycle) but has trimmed cuts later into 2024.
  • Fed Funds futures still show the first cut in June but with a cumulative 33bp of cuts vs 36bp pre SLOOS (and 27bps before payrolls), building to a cumulative 91bp of cuts by end-2024 vs 94bp pre SLOOS (and 84bp before payrolls).
  • See table for latest run vs prior levels.

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