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German Curve Steepening Extends As ECB Hike Pricing Continues To Drip

EGBS
The bull steepening move in the German curve is extending slightly as we head to the cash close, with 2Y yields down 3bp (down 21bp on the day) and 10Y down 2.5bp (14bp on the day) in the past 15 minutes.
  • No identifiable trigger for the move which appears global in nature, but terminal ECB hike pricing has dropped 5bp over the same period, to 43bp cumulative tightening by September - down 13bp from yesterday's pre-Fed level.

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