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ECB Cut Pricing Unfazed By Kazimir Comments

STIR

ECB-dated OIS contracts were largely unfazed by comments from ECB's Kazimir stating that Q1 rate cut expectations were "science fiction".

  • There are still around 20bps of cuts priced for the March 2024 meeting, down from some 23bps Tuesday morning after dovish comments from ECB's Schnabel.
  • The December 2024 meeting contract currently shows 147bps of cuts priced, after reaching a low of around 142bps earlier today.
  • The latest headlines come after ECB's Kazaks sounded more dovish than usual this morning in an MNI event presentation.
  • The Euribor strip currently sits mixed vs yesterday's settlement levels after a recovery from the day's lows, with Whites flat/a touch lower and Reds through Blues firmer.

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