Free Trial

ECB Pricing Also Moves In A Dovish Manner As Bond Move Off Session Lows

STIR

The previously alluded to bid in wider core global FI markets has resulted in a dovish flattening of the ECB-dated OIS strip ahead of the weekend.

  • Liquid contracts are flat to 6bp softer.
  • Residual pricing (~3bp) of a further hike remains evident, although the market is essentially calling time on the Bank’s hiking cycle given its messaging re: monetary policy settings.
  • Beyond there, the first full 25bp cut from current levels is not priced until the Bank’s July ’24 meeting (~21.5bp of cuts are priced through June ’24).
ECB Meeting€STR ECB-Dated OIS (%)Difference Vs. Current Effective €STR Rate (bp)
Oct-233.906+0.1
Dec-233.937+3.2
Jan-243.932+2.7
Mar-243.876-2.9
Apr-243.798-10.7
Jun-243.689-21.6
Jul-243.598-30.7
Sep-243.477-42.8
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.