🏦🔻SOFR Contract Spreads Price In Around 140Bps Of Rate Cuts: Cable FX Macro

• Calendar spreads show rate cuts pricing rising on Tuesday session, the last read is close to 140bps of cuts for next year

• Tuesday December spread compares to about 90bps in mid-November, the market expectation has been extended as employment slows down and inflation comes closer to target

• Analysts have flagged risks of potential disappointment as pricing looks exaggerated, 140Bps of rate cuts is said to be closer to a ‘hard landing‘ scenario