STIR: Fed Rates Extend Reversal Of Hawkish Tilt On FOMC
Jan-30 11:31
- Fed Funds implied rates have continued to reverse the hawkish tilt higher seen with the initial FOMC decision, extending what at the time was only a modest paring with Powell’s press conference.
- Only March holds a notable increase compared to pre-FOMC levels (+2.5bps to leave only 5bp of cuts priced) whilst implied rates from September onwards are a little lower.
- The 48bp of cuts for 2025 is off Monday’s recent dovish extremes of 53bp but is still elevated compared to most of January.
- Cumulative cuts from 4.33% effective: 5bp Mar, 14bp May, 25bp Jun, 31bp Jul and 48bp Dec.
- SOFR futures show larger post-FOMC declines, currently sitting ~5bps lower for 2027 contracts.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
EUR: FX Exchange traded Option
Dec-31 11:27
FX Exchange traded Option, looks like a new short term play, expiry Friday.
Thursday's Mfg PMIs are final reading, and US ISM Mfg on Friday is the only Data of real note.
- EURUSD (3rd Jan) 1.0575c, bought for 0.00030 in 1k.
EURIBOR OPTIONS: Put ladder buyer
Dec-31 11:16
ERZ5 98.00/97.75/97.50p ladder, bought for flat in 1k.
US: SOFR FIX - 31/12/24
Dec-31 11:01
SOFR FIX - Source BBG/CME
- 1M 4.33249 -0.00455
- 3M 4.30510 -0.00534
- 6M 4.25001 -0.01229
- 12M 4.17500 -0.03184
