Swaps - EUR
The ECB hawks have so far been quiet with little sound of pushback against yesterday's market moves.
The ECB hiked 50bps as expected and said it plans another 50bps in March. The Bund has built on earlier gains.
Hints from the BOE that sterling rates are near their peak helped global fixed income bull-steepen. But banks expect two more hikes from the Fed.
Traders eye the ECB meeting after the BOE hikes 50bps but hints at a peak. Some argue a hawkish ECB surprise is unlikely.
About 3/4 of economists expect the MPC to hike rates by 50bps tomorrow but a minority of pre-cogs look for the Bank to start slowing down.
The euro inflation fixing turned bid and the Bund has lagged USTs following the release of euro inflation data.
French inflation matched expectations although sources say uncertainty persists into tomorrow's euro print.
Spanish HICP data surprised and had a big market impact. Issuance is busy and includes a five-part IBM deal
IBM is working on a five-part deal. Other issuers include ANZ and SEB.
A raft of data floated across the Atlantic, but failed to make waves in a pacific market. RBC suggests a livelier week. BNPP says pay the fly.