Euribor Strip Little Change, Conflicting Bond Impulses Noted

Weaker-than-expected UK economic data did not materially impact the Euribor strip, which sits flat to +1.0 tick firmer through the Blues.

• That data and a relatively well-received round of 30-Year supply out of the U.S. leaves Bunds a little above levels seen at the time of yesterday’s Euribor settlement window.
• Elsewhere, news that the German coalition has reached a deal to end the ongoing budget crisis seemingly helps cap rallies in Bunds, although no details released re: the accord are apparent at present.
• ECB-dated OIS contract cut pricing is broadly unchanged vs yesterday's post US CPI levels (incrementally softer on the day). 14bps of ECB cuts are priced through the March 2024 meeting, with 134bp of easing showing through ’24 on the whole.
• ECB's Villeroy spoke on the need for economic and financial unity within Europe late yesterday, but did not comment on monetary policy due to the ECB's pre-meeting quiet period, noting only that inflation’s fall to 2.4% from 10.6% was "impressive".
• Today's Eurozone docket is light, with the Fed dominating the broader macro calendar ahead of tomorrow’s ECB decision.