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SOFR & Dec FOMC-Dated OIS Testing Technical LEvels

STIR

SFRU4 & Z4 finding some support around early ’24 lows.

  • As we have noted elsewhere, this comes with FOMC-dated OIS threatening the first clean break below pricing 75bp of ’24 cuts (75bp of cuts lines up with the median dot in the Fed’s Dec SEP).
  • The Fed will update its SEP next week, expect our preview of that event to be released tomorrow.
  • A meaningful Fed dot move/data input may be needed to trigger a meaningful break of the aforementioned levels.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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