**As seen in Macro Walk report 04/21/23, subscribe at cablefxm.co.uk/reports
The implied rates section in our Macro Walk report continues to show rate cut bets for the Fed as soon as this year, meanwhile, the ECB is priced in to hold policy steady
Swaps currently price in about 50bps of Fed rate cuts by December, this is translated to an implied rate of about 4.5% by end of year. The ECB is seen delivering about 80bps of tightening for the rest of 2023
Pricing has taken the implied rate spread to narrow into the long-end of the curve. The market is now expecting the spread to fall below 100bps by December as the Fed cuts rates while the ECB holds
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