June 06, 2024 12:51 GMT
EGBS Track Initial Hawkish ECB Move In STIRs, Peripherals Widen A Touch
EGBS
EGBs generally tracking what we have seen in the short end since the ECB delivered the heavily telegraphed rate cut, marked its ’24 & ’25 forecasts a little above the general sell-side consensus and underscored it data-dependent approach, choosing not to pre-commit to further easing.
- Bunds to fresh session lows below 130.80, but not testing initial technical support at 130.50.
- German yields are 4-5bp higher, with 5s leading the move.
- Peripherals are under light widening pressure vs. Bunds, but are less than 1bp wider on the day, meaning spread moves remain modest.
- President Lagarde's post-meeting press conference is underway, with focus set to fall on the Q&A.
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