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Policymakers to Discuss 50bps Hike at This Week's Meeting, According to Sources

ECB
  • Reuters cites sources in reporting that the ECB will discuss a rate hike of 25 or 50bps at this week's meeting, and that policymakers are homing in on a deal to make new bond purchases conditional on Next Gen EU targets.
  • The piece also adds that some policymakers would have wanted to involve the ESM, but this option was now likely to be discarded.
  • Full Reuters story here: https://www.reuters.com/markets/europe/ecb-policym...
  • EUR rallying on that headline, putting EUR/USD through yesterday's highs and boosting German yields across the curve. Bund futures through the Monday low and now either side of 151.50.
  • Kneejerk lower in Euribor futures following the release of that story. Dec-22 Euribor from 98.755 to a low of 98.595, but no back at 98.645 at typing.

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