Rates Weekly: Is the ECB already in the rate-hiking cycle?
EUR rates:Recap of the week: The week was dominated by a sharp sell-off in EUR rates following hawkish ECB comments, which repriced the front end and pushed short- to mid-term yields higher. A US Treasury rally after a dovish FOMC meeting, offered some relief but was insufficient to counter the broader European sell-off. As a result, EUR curves experienced a bear flattening. French OATs slightly outperformed, with the 10Y OAT-Bund spread tightening modestly to 70 bps.Tactical view: The end-of-year sell-off is probably confirmed but it could be mitigated by a pushback from the ECB next week. W...