📝 Market Ups Rate Cut Bets After March CPI Report: UBS Strategy

The US CPI report for March keeps a rate hike in play at the May FOMC meeting, according to chief US economist Jonathan Pingle. The OIS market is little changed, pricing 17bp of hikes for May, down 1bp from before the CPI print. Rate cuts are being added to the rest of the year, with the market now seeing 72bp of cuts from the May peak through December FOMC, amounting to an additional 13bp of cuts from before the report.

- UBS Strategy