nt holdings (which consists mostly of France) once the new fiscal year starts next week. Vol adjusted carry is more attractive in the belly of the Eonia is proving to be relatively sticky given the increase Italian curve Ilquidiry 9.0 9.0 7.0 60 5.0 4.0 3.0 2.0 1.0 0.0 -♦- 3M carry and ro

s of excess liquidity. As excess liquidity has now fallen from €800 billion to €230 billion, it is very close to the €100-200 billion range in which Eonia starts to gradually rise back to the middle of the ECB's interest rate corridor. Some view this as equivalent to a 40 basis point stealth rate hike.