Rate-path repricing after the hot September PMI: fed-funds futures lifted October hike odds to roughly ~66% from ~53% earlier Wednesday (Reuters/Kontan), with money markets fully reflecting about three additional hikes over the next year and hedging a fourth. That same impulse sat under the 10y push through ~5.11% and the Nasdaq ~−1.1% session.
Distinct from the Barr-quote wrap and from today’s long-bond buyback ops — this is the probability strip scalpers will reprice on claims. A soft claims print is the first live chance to pull October odds; a firm print keeps the discount-rate headwind on duration and mega-cap growth into DRI/COST.
Sources (paraphrase): Reuters/Kontan global markets wrap.
Does claims near ~201k actually move the October strip, or is the path stuck until the next CPI/PCE?
Oct hike odds ~66% (was ~53%) — money markets price ~3 more hikes next year
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LondonNewsTrader
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