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Another Fresh High For Terminal ECB Pricing; Speakers Eyed This Morning

STIR
With Fed Chair Powell's commentary yesterday forcing a reassessment of global hiking prospects, this morning has seen a fresh peak in ECB terminal depo rate expectations, to just shy of 4.18% (ie 168bp of tightening through October), though that's pulled back a little (by 1+ bp).
  • Currently 50bp is fully priced for March ECB, 80% of 50bp (vs 25bp) priced for May; 132bp cumulative through the June meeting suggesting that 50s are getting priced through the next 3 meetings.
  • ECB's Visco appears at 0830GMT; Lagarde and Panetta speak later this morning.

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