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Morgan Stanley Recommend ECB Jan ‘24/Apr ‘24 OIS Steepener

STIR

Friday saw Morgan Stanley note that “the bar for the ECB to cut as early as 1Q24 seems high, considering that the ECB may be willing to accept a period of stagnant (or even negative) growth in order to bring inflation closer to target.”

  • As such, they recommended entering a ECB Jan ‘24/Apr ‘24 OIS spread steepener position at -21bp, targeting a move towards -10bp and with a stop set at -25bp.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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