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Dovish Move In EUR STIRs Limited As EGBs Tick Away From Best Levels

STIR

The drift away from best levels in long end EGBs also helps EUR STIR markets away from best levels.

  • Euribor futures last show +1.0 to +5.5bp through the blues.
  • ECB-dated OIS is +1bp to -2bp on the day. The strip shows ~167bp of cuts through ’24 as of typing, indicating greater than even odds of the first 25bp cut coming by the end of the March ’24 gathering.
  • Spill over from BoE pricing and the previously covered bid in benchmark EGBs allowed the space to trade in a dovish manner early on Wednesday.
ECB Meeting€STR ECB-Dated OIS (%)Difference Vs. Current Effective €STR Rate (bp)
Jan-243.886-1.3
Mar-243.734-16.5
Apr-243.493-40.6
Jun-243.166-73.4
Jul-242.868-103.1
Sep-242.607-129.2
Oct-242.411-148.8
Dec-242.227-167.2
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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