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US: Relatively Little Reaction To Bullard Comments

STIR
  • There has been relatively reaction to Bullard saying market pricing for five rate hikes this year is not a bad bet and that “we have two meetings there where we could have a rate hike and then also getting the balance sheet runoff going in the second quarter. That would be my preference.”
  • A 50bp move doesn’t help because “we can get a disciplined approach to raising the policy rate and the expectations are already in markets”.
  • Front Eurodollars are largely unchanged for now whilst Fed Funds futures continue to price in 29bps for March and 120bps for Dec.

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