Wunsch Comments Hawkish As Expected; Lane Eyed At 1530GMT

Comments from ECB's Wunsch were unsurprisingly hawkish, and did not promote any persistent feed-through into ECB-dated OIS. Markets now await comments from Chief Economist Lane, who speaks at the Brookings Institution on "Disinflation in the euro area" at 1530GMT/1630CET.

• Wunsch's comments echoed those he gave in December, pointing to the need to see wages move to a level that's structurally compatible with 2% inflation before embarking on an easing cycle.
• Rate cut expectations have continued to moderate through the day, with global core FI and the Euribor strip under pressure.
• There are 121bps of ECB easing priced through 2024 at typing (from 125bps this morning).
• The Euribor strip is -1.0 to -5.5 ticks through the Blues, with Reds under the most pressure.
• The sign-up link for Lane's webcast can be found here.