Free Trial

A fairly calm beginning to payroll......>

EGB SUMMARY: A fairly calm beginning to payroll Friday. Overnight Trump
announced a set of tariffs but indefinitely exempted Mex/Can. Also could exempt
allies if they spend 2% of GDP on military. Market chatter is that chances of
global trade war have lessened slightly. 
- Soon after the bond open yields started heading higher, first in response to a
number of USD swap paying trades in the 7-10Y area and later a large Bund block
trade: 6,519 RXM9 @ 156.99 at 0914:01GMT.
- Notable quantity of downside option trades in the Bobl contract and the 5Y
initially cheapened on the curve. However, 2-5-10Y EUR swap trade noted
mid-morning has pulled back some 5Y underperformance.
- German, French and Spanish industrial production data all came on the weak
side of expectations for January. Partial explanations seen in mild winter
hitting utility output and index re-jigging in France/Spain.
- Core-peripheral spreads quite stable. Bund-BTP 1bp tighter at 134.4bp,
although 10Y+ BTPs heavy ahead of supply next Tuesday.
- 2Y Schatz is +0.5bp at -0.556%, 10Y Bund is +1.9bp at 0.647%. 

To read the full story



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.