The ECB apparently concluded that enough was enough and yesterday stepped up its verbal intervention campaign to correct overdone market expectations for a ECB depo rate hike adjustment. Following the news story in which unnamed ECB sources were quoted as saying that the message of the March press conference was “way overinterpreted” by markets the Bund future jumped 40 ticks, while the ECB dated EONIA forward curve bull flattened. The 10yr Bund yield eventually closed at 0.34%, near the middle of the 0.15%-0.50% range that we continue to foresee up until the second round of the French presidential elections. What is more, we still feel that the ECB dated EONIA forward for Dec-17, at -0.30%, is pricing in a too high probability of a 10bp depo rate hike.