🏦📊 Longer End Of USD Swap Curve Fell The Most: Cable FX Macro
- Rosbel Durán
- Nov 14, 2022
- 1 min read
*As seen in Macro Walk report 11/11/2022, subscribe at cablefxm.co.uk/reports
On a week-over-week basis, we saw Fed hawkish bets trimmed by a decent clip. The peak rate for this tightening cycle is now below 5.0%, this had reached 5.25% early on the month
The developments from last week influenced investors expectations and a reduction of tightening pricing. The swap curve is now penciling an additional 100bps of Fed hiking by mid-2023
The curve fell vs the prior week, however, the reductions were more evident in the longer-end. Pricing for May dipped by 20 basis points to 4.885%, while the implicit rate for December 2023 fell by 41 basis points to 4.393%
Euro expectations diverged from the pullback seen in the USD curve, swaps pricing ECB for next year were mostly unchanged, while the July tenor fell only by 6 basis points
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