STIR: ADP Beat Doesn’t Move The Needle Ahead Of Tariff Announcements
Apr-02 12:58
There has been very little net impact from the ADP beat on Fed Funds implied rates for 2025 meetings.
The solid jobs report might have been partly offset by moderating wage growth although tariff announcements looming large later today are more likely a driver.
The largest increase has been for the June meeting, with cumulative cuts trimmed almost 1bp to 20.5bps.
The Dec’25 is little changed, pointing to 77.5bp of cuts for the year for levels seen as US desks filtered in today.
SONIA: Call spread vs put spread
Apr-02 12:50
SFIZ5 96.20/96.30cs vs 95.75/95.65ps, bought the cs for 2 in 2.5k.