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Fed Repricing Supports ECB- & BoE-Dated OIS Pricing, Familiar Markers Remain In Play

STIR

Impulses from the other side of the Atlantic, in the form of U.S. data and subsequent hawkish Fed repricing, have biased ECB- & BoE-Dated OIS a touch higher in recent trade, although we haven’t seen much in the way of deviation from the recently established markers in the space.

  • ECB-dated OIS prices a ~90bp chance of a 25bp hike next month, while a cumulative ~40bp of tightening is priced through September. Terminal rate pricing has stabilised around 4.00% in deposit rate terms.
  • Across the Channel, BoE-dated OIS continues to price ~45bp of tightening for the August MPC gathering, while terminal rate pricing has nudged back above 6.25%.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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