A Societe Generale rates strategist says markets have fully priced an ECB rate
hike in September and anticipate a further move in March next year, leaving
current hawkish pricing broadly sufficient. Two-year ECB rate expectations have
risen to the top of the recent range, implying the front end of the euro-area
government bond yield curve offers carry in mid‑summer and is a favorable entry
point to reposition into a euro-area curve steepener.
