STIR: ECB Implied Rates Little Changed By Panetta, Euribor Tracking Bunds

ECB-dated OIS were little moved by unsurprisingly dovish comments from Bank of Italy’s Panetta, with 68bps of easing still priced through the remainder of 2024.

• Panetta said the ECB were likely heading for a “phase of loosening”, though his remarks were mostly focused on non-monetary policy matters.
• Euribor futures are flat to +2.5 through the blues, having moved alongside Bunds throughout the day.
• Tomorrow remains the key regional focus, with August flash PMIs and Q2 negotiated wages due. The Eurozone-wide PMIs are not expected to deviate much from July’s readings, which were weaker-than-expected at the time. 
• Meanwhile, we have noted a wide range of analyst estimates for negotiated wages. See here for more colour there: https://marketnews.com/eurozone-data-wide-range-of-estimates-for-q2-negotiated-wages-on-thursday