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Looking Through ECB Accounts

EGBS

{EU} EGBS: EGBs are unmoved by the accounts of the ECB’s March meeting.

  • Post-decision rhetoric has already pointed to June as the most likely starting point for the rate cutting cycle.
  • That leaves markets essentially fully discounting a June cut, along with only ~2bp of easing being priced for next week’s decision.
  • Bund futures are a little below the middle of their narrow session range, while the German yield curve sees modest bull flattening.
  • Most EGBs are tighter to Bunds, with BTPs outperforming after this morning’s stronger-than-expected Italian PMI data.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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