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US March Rates Largely Retrace, Less So Further Out

STIR
  • Fed Funds futures are pricing in 27.3bps of hikes for the March meeting after a roundabout day, touching over 28bps before the US came in and then moving as low as 26.2bps on the broader rally.
  • Pricing for the Dec meeting meanwhile has dropped from a high of almost 108bps in Asian trade to 100bps, back closer to where it started the week.
  • Similarly, EDH2 is back only 1 tick higher on the day having been 2.5 ticks higher whilst EDZ2 is still up 3.5 ticks and the rest of the curve 4-5 ticks.
  • Second tier data releases tomorrow with jobless claims, Philly Fed and existing home sales.

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