3min chapter

The Macro Trading Floor cover image

A 2023 Global Macro Outlook | Alfonso Peccatiello & Andreas Steno Larsen

The Macro Trading Floor

CHAPTER

Euro Curve Cash Back - Is That Really Possible?

Euro terminal rates in Europe at 342%. So there's been a massive reprising but still we're at least 60 to 80 basis point off. Translating that into two-year yields, we are talking probably about 100 basis point-ish from where we are today. It wouldn't be shots at 5% but at 3.5%, it's totally understandable. The other consideration is euro against the dollar and BTPs.

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