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STIR: Modest Hawkish Drift After German HICP Tops Expectations

STIR

Modest hawkish pressure for European FI markets as German HICP prints 0.1ppt above expectations in both the M/M & Y/Y readings.

  • EUR STIRs had already ticked away from dovish session extremes alongside a similar move in the long end.
  • ECB-dated OIS now back to pricing ~85bp of cuts through year-end, little changed on the day and vs. ~89bp seen at one stage this morning.
  • Euribor futures unchanged to +2.0.

ECB Meeting

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Modest hawkish pressure for European FI markets as German HICP prints 0.1ppt above expectations in both the M/M & Y/Y readings.

  • EUR STIRs had already ticked away from dovish session extremes alongside a similar move in the long end.
  • ECB-dated OIS now back to pricing ~85bp of cuts through year-end, little changed on the day and vs. ~89bp seen at one stage this morning.
  • Euribor futures unchanged to +2.0.

ECB Meeting

Keep reading...Show less