###POV: Has the Market interpreted the........>

EONIA: ###POV: Has the Market interpreted the Reuter's ECB sources incorrectly?

- MNI PINCH see ECB forward dated EONIA has risen in reaction to Reuter's ECB

source story despite the article highlighting concerns within the GC about the

steepens of the forward rate path. ECB forward dated Eonia for June 2019 has

risen to -0.245% from -0.259% and Sep 2019 has increased to -0.142% from

-0.171%, with markets pricing in over three 10bps rates hikes in total for 2019.

- The message about the steep rate path appears to have been lost as main

headline appears to have been focused on the doves within the GC agreeing that

QE is likely to end in Dec 2018 and being "comfortable" with the first rate hike

in Q2 2019. 

- The Article quotes one source saying that the ECB could use "other tools"  to

anchor rate expectations, like "a more precise forward guidance or more

long-term refinancing operations". Another sources was quoted as saying that

rate expectations needed "to be very firmly anchored by the time we take the

first policy decision".