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The front end of the Eonia curve is...........>

EONIA
EONIA: The front end of the Eonia curve is modestly steeper in early Monday
morning trading compared to Friday's close, as ECB's Lautenschlager says the ECB
should start considering how to wind down its QE programme. Move seen held back
by strong German retail sales however and upcoming Eurozone flash July CPI at
1000BST. MNI median forecast for EMU flash CPI is for it to remain at 1.3% y/y
and for core to also remain at 1.1% y/y. According to MNI PINCH, market now
calculates around a 22% chance of a 10bp rate hike in Mar 2018. MNI see 1y/1y
Eonia 0.6bp higher at -21.9bp & following levels in ECB forward dated Eonia.
- Sep-17 unchanged at -0.353%
- Oct-17 unchanged at -0.352%
- Dec-17 0.1bp higher at -0.345%
- Jan-18 0.2bp higher at -0.344%
- Mar-18 0.2bp higher at -0.337%
- Apr-18 0.2bp higher at -0.334%
- Jun-18 0.2bp higher at -0.316%
- Jul-18 0.2bp higher at -0.312%

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