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ECB Hike Pricing Pulls Back On Report Of Guindos Bank Warning

ECB
Today's ECB hike pricing dropped about 4bp to 34bp (ie leaning more toward 25bp vs 50bp) on a Bloomberg piece reporting ECB de Guindos told Euro finance ministers on Tuesday that some EU banks could be vulnerable to rising rates - terminal pricing dropped 18bp (from 3.23% to 3.05%) but is bouncing back a little.
  • This from the article will be a key theme in today's communications no doubt: "Touching on a likely key theme of Thursday’s rate decision, Guindos highlighted the potential conflict between the ECB’s mission to bring down inflation and potential damage to some financial institutions from higher interest rates."

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