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STIR: Euribor Futures Off Highs As Post-U.S. PPI Reaction Fades A Little

STIR

Euribor futures are off highs as the dovish reaction to the lower-than-expected US PPI data fades a little, with futures sitting just below yesterday’s settlement levels.

  • ECB-dated OIS contracts price 36bps of cuts through the remainder of 2024, after reaching a post-data extreme of 39bps.
  • The implied probability of a 25bps cut at the September meeting is ~60%, in line with this morning’s levels.
  • Tomorrow’s regional data docket does not feature traditionally market moving releases, but scheduled appearances from ECB Executive Board members Lane (1000BST), Schnabel (1430BST) and Lagarde (1830BST) will attract interest, as usual.

 

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Euribor futures are off highs as the dovish reaction to the lower-than-expected US PPI data fades a little, with futures sitting just below yesterday’s settlement levels.

  • ECB-dated OIS contracts price 36bps of cuts through the remainder of 2024, after reaching a post-data extreme of 39bps.
  • The implied probability of a 25bps cut at the September meeting is ~60%, in line with this morning’s levels.
  • Tomorrow’s regional data docket does not feature traditionally market moving releases, but scheduled appearances from ECB Executive Board members Lane (1000BST), Schnabel (1430BST) and Lagarde (1830BST) will attract interest, as usual.

 

Keep reading...Show less