Swaps market now sees Fed, ECB, and BoE start of policy easing at the same time this year. Money markets were surprised last week when the SNB decided to cut rates by 25bps
Our central bank tracker leaves the ECB leading the easing cycle as swaps price in a total 93bps of rate cuts in 2024
While the SNB is expected to deliver 50bps of rate cuts this year, the terminal rate is far lower when compared to most DM central banks. Markets end of 2024 implied policy rates pencils a U.S.-SZ premium of 355bps
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