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🏦📊 Interest Rate Probabilities: Market Implies Additional 125bps Of Tightening

Writer's picture: Rosbel DuránRosbel Durán

**As seen in Macro Walk report 11/04/22, subscribe at cablefxm.co.uk/reports


  • We recently heard from the FOMC, projections were not updated, but the Fed Chair was vocal about the trend in rates pricing. Going in to the event, the dollar swap curve had seen a peak at around 4.90% by May next year, the latest read throws a peak rate at about 5.1%.

  • It is important to note that pricing pulled back after having reached 5.25% on a hawkish FOMC

  • Markets imply that the Fed is set to deliver an additional 125bps of tightening by next year. The CPI report on Thursday may feed expectations of a slower pace or higher for longer rates

  • **We have recently updated the AUD cash futures curve with calendar pricing covering 2023



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