0836 GMT - Government bond market reaction to an expected 25 basis point interest-rate cut by the European Central Bank this week is likely to be muted, SEB Research's Jussi Hiljanen says in a note. Market pricing for the ECB's January meeting has been stable since the December meeting, although markets have priced out a 25 basis point cut for the whole of 2025, the chief strategist for dollar and euro rates says. "We think this move [pricing out] has been facilitated mostly by developments outside the euro area, especially the U.S.," he says. Markets currently price the ECB's terminal deposit rate at around 2%, according to LSEG data. The ECB's deposit rate is currently 3%. The 10-year German Bund yield falls about 4.5 basis points to 2.529%, according to Tradeweb. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

January 27, 2025 03:36 ET (08:36 GMT)

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