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BoE Pricing Pulls Back Friday's Jump, ECB Centred Around 4%

STIR
  • BoE terminal Bank Rate pricing -9.8bp to 6.18% today (118bp of further hikes left in the cycle to Mar 2024). There was little to spur this degree of repricing Monday - which effectively took back Friday's jump - and pricing for the August MPC remains firm at 44bp. It's best interpreted as another volatile move ahead of Wednesday's CPI data.
  • ECB terminal depo Rate pricing -0.8bp to 4.01% (51bp of further hikes left in the cycle to Dec 2023) - ECB hike pricing remains centred around the 4% mark, with little to sway the needle to day in terms of data (unch Italy CPI) and speakers (Nagel today again pointed to a July hike, with September data dependent).

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