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STIR: Long Setting Dominated In SOFR Whites On Thursday, Mixed Moves Further Out

STIR

OI suggests that net long setting dominated in SFRZ4 & H5 on Thursday, as markets reacted to the Fed’s 50bp cut.

  • A mix of short setting and long cover was seen in SFRM5 through M8 after Chair Powell attempted to play down any speculation that the 50bp move set a precedent for the size of any subsequent easing, while suggesting that the neutral rate is likely significantly higher than in recent cycles.

 

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OI suggests that net long setting dominated in SFRZ4 & H5 on Thursday, as markets reacted to the Fed’s 50bp cut.

  • A mix of short setting and long cover was seen in SFRM5 through M8 after Chair Powell attempted to play down any speculation that the 50bp move set a precedent for the size of any subsequent easing, while suggesting that the neutral rate is likely significantly higher than in recent cycles.

 

Keep reading...Show less