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What to Watch: Aftermath of SVIB Collapse

US TSYS
  • Surge in short end rates resumes as Silicone Valley Investment Bank's collapse late last week continues to send shock waves across markets.
  • A lot to follow despite the Federal Reserve in media blackout regarding monetary policy, no data today, CPI tomorrow MoM (0.5% prior, 0.4% est); YoY (6.4%, 6.0%).
  • US President Biden expected to have press conference on banking system, protecting economic recovery sometime after 0800ET.
  • Futures pricing implied rate hike chances have fallen from high expectation of 50bp hike on March 22 to chance of a pause through the fall.
  • The Federal Reserve announced "it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors" late Sunday (FRB).

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