Euribor Futures Off Lows But Remain Weaker

Euribor futures are off intraday lows but remain -1.0 to -3.5 ticks through the blues after core FI drifted lower through the Asia-Pac session.

• German industrial production printed a touch above consensus but was still negative on an annual basis for the 10th consecutive month.
• ECB-dated OIS implied rates firmed a touch overnight but remain within recent ranges, with 23bps of cuts priced through the June meeting and 72bps of easing priced through year end.
• Today’s scheduled ECB speakers include the hawkish-leaning Wunsch and the usually dovish de Cos, the latter of whom we heard from yesterday (with little deviation from the status quo, pointing to a rate cut in June, while providing little colour beyond that meeting).
• Today’s regional data calendar includes Spanish industrial production and Italian retail sales.