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EUR rates: Four 2024 rate cuts and counting
Rate cuts have been priced out fast. Three rate cuts are as low as markets can go. Inflation on Friday and the ECB meeting next week to set the tone. Steepeners may become fashionable when the front-end sell-off stops. Possibilities in tenor basis. Rate cuts have been priced out fast during February. Going into the March ECB meeting, less than four rate cuts are priced for 2024 and only one rate cut is priced by June. We believe three rate cuts are as low as markets can go without significant changes to the macro picture given that the ECB is fixated on a June rate cut. table Friday’s inflation print is ... (full story)