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Terminal Fed Rate Unwinds FOMC Minutes Dip

STIR FUTURES
  • Fed Funds implied hikes have unwound the FOMC minutes decline for 2023 rates, with a terminal seen in the middle of the post Nov 2 FOMC range of 4.85-5.19%.
  • 52bp for Dec (-0.5bp from Wed close), 91.5bp to 4.76% for Feb’23 (unch), terminal 5.02% May/Jun’23 (+1bp) and 4.65% Dec’23 (+2bp).
  • No Fedspeak scheduled today with Williams/Bullard next on Mon and Powell of note on Wed.

FOMC-dated Fed Funds implied ratesSource: Bloomberg

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