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EUROZONE ISSUANCE

EGB Supply for W/C Jul 26

USDCAD TECHS

Pullback Considered Corrective

US TSYS SUMMARY

What a Short, Strange Trip It's Been

GLOBAL POLITICAL RISK

Pfizer, Moderna Jabs Retain High Trust; AZ, Sputnik Lower

AUDUSD TECHS

Trend Indicators Remain Bearish

STIR

Goldman Sachs note that "ECB chief economist Philip Lane reiterated the ECB's aim of returning to the pre-COVID trend in inflation through its crisis policy response. We continue to expect inflation to recover only gradually over the coming years, and as a result the pre-COVID ECB projections will remain elusive - ECB staff projections for core HICP inflation in 2022, as published in their June Economic Bulletin, exhibit a sizable gap of 0.7ppt compared to pre-COVID levels. Surveyed inflation expectations remain subdued, even as market-based measures of inflation continue to rise. This suggests the ECB will need to continue providing support following the expected end of PEPP in mid-2021, as our economists expect. At the same time, while EUR strength has so far reflected improving fundamentals in the Euro area, further strength will increasingly add to inflation headwinds. As a result, we continue to think front-end OIS receivers (such as 6m6m OIS, which prices less than 3bp of cuts) look attractive, particularly as the virus case count inflects upwards in Europe."

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com