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Yields Surge As Dot Plot Embodies Drives Home Higher For Longer

US EURODLR FUTURES
  • There are sizeable increases in yields across the Eurodollar curve through the white, red and less so green packs on the back of the hawkish dot plot (4.4% end-22, 4.6% end-23 an3.9% end-24),
  • Increases are led by 2023 contracts with currently 15bp increases on the day, of which circa 10bps has come since the announcement as the curve further embodies higher for longer.
  • Spreads: EDH3/EDZ3 remains near highs for the past few weeks, although still looks for cuts with -0.385 despite the dot plot, with a faster pace of cuts further out as EDZ3/EDZ4 and EDZ3/EDZ5 touch new lows.

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