Report published August 28, 2026
US Rates Alpha: Bank of America Closes Pay Jan'27 FOMC OIS
Source and citation context
- Issuer
- Bank of America
- Report date
- August 28, 2026
- Analysis as of
- Not stated in source
Authors / editors: Mark Cabana, Meghan Swiber, Ralph Axel, Bruno Braizinha, CFA, Katie Craig, Eleanor Xiao
Finvaulta summarizes Bank of America's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
BofA closes its tactical trade recommendation to pay Jan '27 FOMC OIS at 4.08 following Chairman Warsh's Jackson Hole speech, which restored Fed credibility and repriced tighter monetary policy. The strategists argue the policy path is now fairly priced given softening economic data and upcoming election risks.
Key Takeaways
- 1.BofA is closing its recommendation to pay Jan '27 FOMC OIS at 4.08 (entered at 4.02) after Chairman Kevin Warsh's Jackson Hole speech successfully restored Fed credibility and repriced tighter policy.
- 2.Near-term policy path is now fairer and hinges heavily on upcoming August NFP and CPI data surprises, which have softened modestly since July.
- 3.Midterm election dynamics and potential changes to the schedule/number of Fed meetings create additional event risk and technical uncertainty for Jan '27 OIS contracts.
Table of Contents
- Credibility re-established
Report data
Key figures extracted from this report
| Metric | Estimate | Context |
|---|---|---|
| Jan '27 FOMC OIS close level | 4.08% | Position closing rate after entering at 4.02 with target 4.40 and stop 3.70 |
| Jan '27 FOMC OIS initial entry level | 4.02% | Initial entry level for the pay Jan '27 FOMC OIS trade |
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Authors / Editors
Reported Data Context
- Jan '27 FOMC OIS close level: 4.08 % (2026-08-28)
- Jan '27 FOMC OIS initial entry level: 4.02 % (Post-July FOMC)
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Themes
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