Traders pare ECB rate hike bets after French inflation data

  • A bet on 50 bps of rate hikes has been priced out now, but just slightly

That comes after the softer French inflation report earlier, which follows a similar trend to the Spanish report from yesterday. And if Germany's industrial state is any indicator, we should see the same for Europe's biggest economy as well later today. In terms of market pricing, we are seeing the terminal rate get pulled lower as compared to earlier this month:

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