Overnight index swaps saw hawkish bets building higher after the FOMC presser, the curve stepped up the Fed's terminal rate as expectations are now set for rate hikes beyond February
The overnight index swap May 2023 tenor is now closer to 5.2%, this is almost 30bps higher from where it was on Friday last week and 20bps higher from October close
Calendar spreads on eurodollar contracts have trimmed their previous bets on rate cuts for 2023, the Dec.22/23 spread is now technically flat vs -37bps a month ago. The Dec.22-June 23 spread is now pricing more than a full 25bps rate hike for next year, the differential was flat on Friday close
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