Eonia last fixed at -0.3650% up from..........>

EONIA: Eonia last fixed at -0.3650% up from -0.3710% with volume at EUR1.4bln

down from EUR2.9bln. 

- Excess liquidity stands at EUR 1,865bln. 10:26:38 There has been little

reaction to this morning's Eurozone CPI flash estimate, or the individual prints

for the Big 4 which were published yesterday. However, spot rates have broadly

pushed higher since February 20.

- Similarly implied forwards have been inching higher with the 2y1y up 6.6bp on

the week. Rate expectations, particularly over the medium term, have become

heavily depressed and potentially overcooked. As we have highlighted several

times, the 5y1y has traded down ~56bp since October and implies minimal

tightening over the medium term. A pullback would be natural at this point. That

the EUR 5y5y forward inflation swap has also surged in the last few days

suggests that a significant re-pricing at the longer end could be on the cards.