Euribor Futures Lower, Further Unwind Of Pricing OF ECB Cuts

Euribor futures are 1.0-6.5 lower through the blues, with the reds under the most pressure.

• ECB-dated OIS contracts are 0.5-5.5bp firmer through '24. That leaves ~126bp of cuts priced over that horizon.
• The macro impulses flagged elsewhere (Fed Chair Powell’s weekend comments and a hawkish BoJ sources piece in the FT) have helped EUR STIR markets to move in a hawkish direction early this week.
• Weekend ECB speak did little to move the needle, with speakers from across the dove-hawk spectrum generally sticking to their respective scripts.
• Services & composite PMIs from across the continent headline the regional data docket to start the week, with the releases from the larger nations and Eurozone-wide data representing final prints.
• Elsewhere, Eurozone Sentix & PPI prints are due.