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Little Changed To A Touch Softer

EURIBOR

Euribor futures sit flat to -1, with Bund futures in line to a touch below levels seen around the time of yesterday’s Euribor settlement.

  • Late Tuesday saw ECB’s Holzmann (hawk) note that it’s unclear if the ECB has reached terminal rate levels, as he chose not to exclude the idea of further rate hikes given upside inflation risks and the potential for upside economic surprises. Holzmann also pointed to his preference for a quicker move re: PEPP QT, while noting that he wouldn’t be in favour of outright APP sales.
  • Today’s maturity re: TLTRO-III.5 funds will drain liquidity from the system, but is a longstanding known.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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