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Bunds Bid, EUR Falters as Knot Upbeat on Inflation

CROSS ASSET
  • ECB's Knot speaks on inflation on BBG TV, states that:
  • Looks like core inflation has plateaued, and is optimistic to see inflation hitting 2% next year. Adds that hikes beyond July are possible, but not certain.
  • EUR fading slightly off highs on those Knot comments (typically one of the most hawkish on the governing council), as he appears confident that we've passed the peak of core inflation in the Eurozone, thereby questioning the ECB hiking cycle beyond July. ECB terminal pricing pulls lower by around 4+bps on the comments

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