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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
OAT
With a political resolution unlikely in the near future (and certainly not until after the Olympics conclude on August 11), prospects for a meaningful re-tightening in spreads appear limited.
- The 10-year OAT/Bund spread has hovered just above 70bp since the middle of last week, after it became clear that the ongoing political impasse would not be solved prior to the Olympic Games’ opening ceremony.
- The spread had previously traded around ~65bps following the French second-round legislative election results.
- Q1 Eurozone fiscal data (released last week) re-affirmed the deteriorating trajectory of French budget deficits relative to major peers. However, it’s still unclear which of political impasse or an NFP-influenced Government is more damaging for the near-term fiscal outlook.
- Our Political Risk Team outlined the most likely scenarios to resolving the political impasse last week: https://marketnews.com/politics-on-hiatus-as-olympics-get-underway
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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