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STIR: Euribor Sees Contained Reaction To BoE’s Pill

STIR

Euribor futures are flat to +4.5 ticks through the blues, after a fairly contained reaction to comments from BoE Chief Economist Pill. 

  • Pre-release dovish positioning and some modestly hawkish comments from Pill drove the initial negative reaction in SONIA and Gilt futures, with Bunds seeing some modest spillover.
  • However, ECB-dated OIS contracts are broadly unchanged versus this morning’s levels, with 40bps of cuts priced through the remainder of ’24 and 19bps of easing priced through the September meeting.
  • US CPI headlines tomorrow’s macro calendar, with German final June CPI  and UK GDP data also due in the morning.

 

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Euribor futures are flat to +4.5 ticks through the blues, after a fairly contained reaction to comments from BoE Chief Economist Pill. 

  • Pre-release dovish positioning and some modestly hawkish comments from Pill drove the initial negative reaction in SONIA and Gilt futures, with Bunds seeing some modest spillover.
  • However, ECB-dated OIS contracts are broadly unchanged versus this morning’s levels, with 40bps of cuts priced through the remainder of ’24 and 19bps of easing priced through the September meeting.
  • US CPI headlines tomorrow’s macro calendar, with German final June CPI  and UK GDP data also due in the morning.

 

Keep reading...Show less