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ECB: Diverging paths with Fed – Commerzbank

Commerzbank economists highlight that markets now price a more proactive ECB stance, with €STR forwards discounting at least one 25 basis point hike by July and nearly two by year-end, even as growth risks rise. In contrast, Fed Funds and OIS curves have only pared rate-cut expectations, leaving 2-year UST yields trading above the effective Fed Funds rate and interest on reserve balances. [...]