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MNI PINCH UPDATE: There has been a mild....>

EUROZONE
EUROZONE: MNI PINCH UPDATE: There has been a mild uprating of the PINCH pricing
for the Eurozone. The probability of a 10bps increase in the deposit rate by the
December meeting now stands at 33.9% up from 27.2% a week ago. With signs of an
economic turnaround still elusive (industrial production, in particular,
continues to worsen), the recent pickup in implied policy rate probabilities
likely reflects a pullback from overextended dovish pricing. To that end, we
note that the Eonia 5y1y forward trades at just 0.58% down from 1.22% in
October.
Please see: https://emedia.marketnews.com/MNI_PINCH_Update_15-02-2019.pdf

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