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STIR: Euribor Futures Off Highs Alongside Bunds, More Dovish ERM5 Structures

STIR
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Euribor futures are -0.5 to -1.5 ticks softer through the blues, off overnight highs alongside Bunds. 

  • ERM5 is -0.5 ticks at 97.780. We have seen several dovish option structures in this contract over the past three days.
  • ECB-dated OIS continue to essentially fully price 25bp cuts at the January and March meetings, with 97bps of easing priced through year-end.
  • Policymakers generally appear comfortable with market pricing in the near-term, with Dutch CB Governor Knot the latest to endorse Jan/March pricing.
  • However, Knot did not express a need to bring policy below the neutral rate - unsurprisingly given his generally hawkish leanings.
  • Meanwhile, Bank of Greece Governor Stournaras re-iterated his calls for gradual 25bp cuts towards 2%.
  • Today’s regional data calendar is light, with focus on ECB speakers. President Lagarde is scheduled at 1505GMT/1605CET.

 

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Euribor futures are -0.5 to -1.5 ticks softer through the blues, off overnight highs alongside Bunds. 

  • ERM5 is -0.5 ticks at 97.780. We have seen several dovish option structures in this contract over the past three days.
  • ECB-dated OIS continue to essentially fully price 25bp cuts at the January and March meetings, with 97bps of easing priced through year-end.
  • Policymakers generally appear comfortable with market pricing in the near-term, with Dutch CB Governor Knot the latest to endorse Jan/March pricing.
  • However, Knot did not express a need to bring policy below the neutral rate - unsurprisingly given his generally hawkish leanings.
  • Meanwhile, Bank of Greece Governor Stournaras re-iterated his calls for gradual 25bp cuts towards 2%.
  • Today’s regional data calendar is light, with focus on ECB speakers. President Lagarde is scheduled at 1505GMT/1605CET.

 

Keep reading...Show less