Fed Funds Surge After Jobless and GDP
Fed Fund futures are higher following the unexpected jump in Initial Jobless Claims and now show an implied rate of 2.41%. Rate futures fully encompass a 50bp cut and factor in a 36% chance of a 75bp cut at the upcoming FOMC meeting.
Meanwhile, 90-day Eurodollar futures are also higher as a result of the increase in bets favoring a 75bp cut mid-March.