May 29, 2024 06:40 GMT
STIR: Euribor Futures Softer Following Weak US Auctions, Firm AU CPI
STIR
Euribor futures are flat to -5.5 ticks through the blues, with weak US Tsy auctions and firmer-than-expected Australian CPI weighing since yesterday’s settlement.
- ECB-dated OIS implied rates have subsequently moved higher, now showing 59bps of rate cuts through the remainder of ’24 (vs 61bps at yesterday’s close).
- German flash May CPI headlines today’s regional calendar, with the European wide inflation figure due on Friday. Our full preview of the latter release is here.
- Confidence data from France and Italy, retail sales, and an appearance from ECB’s Villeroy are also scheduled.
- A reminder that Monday saw Villeroy suggest that the ECB should not “rule out” a second rate cut in July in a bid to maintain maximum optionality.
- Those comments came at the same time as dovish remarks from ECB chief economist Lane, spurring a dovish market reaction.
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