TREE NEWS update: The Federal Reserve confirmed it will remove its October 2027 meeting from the FOMC calendar, triggering a wave of trading in the October 27/November 27 fed funds futures spread. Flows included buying 12,000 October 27/November 27 spread contracts at -0.5 basis points, pushing the basis back to zero. The largest single trade was 10,000 contracts executed at 11:59 a.m. ET, the largest volume in that spread to date; 406 contracts traded Wednesday after no trading and minimal size through October 29.
Fed’s Removal of October 2027 FOMC Meeting Sparks Fed Funds Futures Spread Trading
The Fed's calendar change is a structural event for the front-end complex: removing a meeting doesn't just alter the policy path, it reprices the contract months that reference it, and the spread activity shows traders repositioning around that mechanical shift rather than around any policy view. The concentration of volume — a single large print dominating a spread that had barely traded — suggests thin liquidity meeting a sudden need to adjust, which can amplify moves in adjacent contracts. The open question is whether this is a one-off rebalancing or the start of sustained interest in the newly reshaped calendar.
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