Market expectations regarding terminal interest rates in the $-bloc have softened slightly (3-4bps) over the past week. Terminal rate expectations and the cumulative tightening currently stand at:

• 5.42%, +9bps (FOMC);
• 5.24%, +24bps (BoC);
• 4.22%, +15bps (RBA); and
• 5.71%, +21bps (RBNZ).

Figure 1: $-Bloc STIR: Terminal Rate Expectations & June’24 Pricing

Source: MNI – Market News / Bloomberg