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ECB Pricing A Little Firmer To Start The Week

STIR

Previously covered late Friday comments from Lagarde & Kazaks, coupled with this morning’s typically hawkish commentary from Holzmann, has biased ECB-dated OIS a touch higher today.

  • The liquid contracts sit little changed to ~3bp firmer on the session, leaving ~11.5bp of tightening showing for next month’s meeting, while terminal deposit rate pricing shows around 3.95%.
  • Comments from Bundesbank chief Nagel, stressing the Bank’s data dependent stance, alongside a refrain re: pre-committing to the September decision at this stage, did little for the space.
ECB Meeting€STR ECB-Dated OIS (%)Difference Vs. Current Effective €STR Rate (bp)
Sep-233.768+11.6
Oct-233.829+17.7
Dec-233.849+19.7
Jan-243.839+18.7
Mar-243.791+13.9
Apr-243.716+6.4
Jun-243.616-3.6
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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