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Citi Recommend Paying Oct ECB OIS

STIR

Late Wednesday saw Citi recommend paying Oct ’24 ECB-dated OIS.

  • They reasoned that “the progress of headline inflation towards the ECB’s 2% target confirms the direction of travel, but the stickiness in core argues for a cautious policy approach.”
  • “A 25bp cut in two weeks is essentially a done deal.”
  • “While pricing is likely to remain reactive to U.S. payrolls next week, a cut in October likely requires stronger domestic justification in the form of a sharp fall in core HICP.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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