Markets price the Fed will reach 5.0% on its target rate by March, tightening bets pencil rates about 50 basis points higher to where the March tenor was at the beginning of the month
The calendar spreads in Dec22-23 eurodollar contracts have now pared back rate cuts expectations, EDZ2EDZ3 spread ticks at -0.140, up from -0.80 in July. Interest rate cuts pricing were extended back in June when recession fears led to speculation about a potential pivot, where the Fed stands here is clear
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