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US - Slightly Smaller Hikes Priced For Near Term Meetings

STIR FUTURES
  • Only partially retracing large moves, Fed Funds implied hikes are 1-2bps smaller with Mar at 38bps, Jun 92bps and Dec 157bps following on from the FOMC minutes.
  • Upcoming meeting pricing is back at US CPI initial reaction levels from Feb 10 whilst Dec pricing remains modestly higher.
  • Front end Eurodollars have retraced more significantly with most whites and reds up only 1-2 ticks (and Dec reds unchg) since the release for 3-4.5 ticks on the day.

Fed Funds pricing for specific meetingsSource: Bloomberg

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