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Goldman Recommend April-Dec ECB Flatteners On Faster ECB Cuts

STIR

Goldman Sachs see “asymmetry in front-end pricing and recommend April-Dec ‘24 ECB OIS flatteners, entered at -101bp, targeting -150bp with a stop of -68bp. Presuming we are right on the low inflation outlook, our modal policy rate path implies further curve flattening, and cuts should also see the market pricing additional risk of faster easing.”

  • They also think “this trade will work if a reluctant ECB pushes back on March cuts, with the market likely to price in stronger adjustments in the second half of the year as a result.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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