EU HICP Excluding Food, Energy, Alcohol & Tobacco Flash YY (Dec) 2.3% vs. Exp. 2.4% (Prev. 2.4%)

The EU HICP excluding food, energy, alcohol, and tobacco came in at 2.3%, slightly below expectations of 2.4%.

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UK sells GBP 4.25bln 4.125% 2031 Gilt; b/c 3.50x (prev. 3.23x), average yield 3.980% (prev. 4.093%), tail 0.2bps (prev. 0.2bps)

[MARKET UPDATE] Modest hawkish reaction in EUR and Bunds on the EZ Flash HICP figures, as bets for a cooler-than-expected print following the German series unwind. The move proved fleeting with HICP at the ECB's target and the on-hold narrative maintained

EU HICP Excluding Food, Energy, Alcohol & Tobacco Flash YY (Dec) 2.3% vs. Exp. 2.4% (Prev. 2.4%)

[MARKET ANALYSIS] Choppy but contained FX trade as markets await economic data

"Iran's president calls on law enforcement agencies not to attack protesters", Sky News Arabia reports

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Context

This miss could suggest that underlying inflation pressures may be easing, which may influence ECB policy discussions moving forward, particularly regarding interest rate levels. The market might react by recalibrating expectations around future rate hikes if this trend continues, signaling a more dovish outlook.

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