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EUR Mini Wrap

CREDIT UPDATE
  • December ECB rate pricing 9bps lower DoD, with markets pricing in 140bps bps of cuts this year and December rate pricing just below 2.5% as markets take a dovish tone.
  • EGB rally continues with 2y/10y bunds now 11bp/7bp tighter since immediately before 13:15. Gilts/BTPs 5bp/4bp tighter DoD.
  • Main/XO have continued tightening over the press conference to to 1.2bp/7bp tighter compared to immediately before 13:15, now 0.4bp/2.3bp tighter DoD.
  • FICM showing €HY spreads +5.5bp DoD (13:15 print was flat DoD). €IG still streaming in tighter territory (though broadly flat to gives based on swap spread moves).

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