Euribor Strip Firmer On Day, Tracking Core FI

The Euribor strip is off intraday highs, but remains flat to 2.0 ticks higher through the Blues, tracking the uptick in core FI from Asia-session lows . However, the Dec 24 contract remains around 13 ticks off last week's high, with implied rates of 3.17% at typing vs a low of 3.04% last Tuesday.

• Over the weekend, Bundesbank chief Nagel called on Germany to resolve the ongoing budget situation quickly and commented in line with his hawkish leanings in stating that the ECB is "not yet where we want to be" on inflation.
• Elsewhere, Bank of Spain Governor de Cos noted on Friday that the fall in Eurozone bank lending has been "falling faster than we expected" while Estonian CB chief Muller does not currently see the need for more rate hikes from the ECB.
• ECB-dated OIS contracts continue to indicate that the ECB deposit rate is at its peak, with the first cut still more than priced for the June 2024 meeting (28bps of cuts priced). There are around 83bps of cuts priced by the December 2024 meeting, down from over 90bps seen early last week.
• Today's European docket is highlighted by Lagarde at 1400GMT/1500CET, who speaks at the EU Parliament before the Committee on Economic and Monetary Affairs.