Zero is just another number,......>

FED FUNDS FUTURES: Zero is just another number, not a lower bound when subject

of negative rates raised with a minority of market analysts. The majority of

researchers still do not see rates going negative despite implications of the

ongoing bid in 2021 Fed fund futures strip over 100.0 to as high as 100.060

(+0.010-0.045) that is bleeding over to early 2022, albeit on very light

volumes. More liquid Eurodollar futures in same sector trade +0.030-0.045 from

99.855-.99.85.

* CIBC's Ian Pollick said move "is more likely due to the excess amount of cash

in the market rather than a statement that the market expects the Fed to slash

rates to negative."

* But as Wrightson ICAP noted earlier the "longer the Fed is perceived to

tolerate negative quotes in the futures market, the more widespread the

conviction that overnight rates will indeed turn negative will become. And if

that expectation becomes deeply

entrenched, the cost of disappointing the market later this year will rise."