A really busy session

A very busy session for EGBs this afternoon, all led by EU Official stating that the market is underestimating the odds of a rate cut.

• Bund jumped and traded through that 177.96 triple top, to print a 178.12 high.
• The contract has since faded somewhat on FM profit taking, now just below 178.00 at the time of typing.
• Peripheral are all trading wider against the German 10yr, but have kept pace.
• Greece trails the most at 2.2bps wider in the session
• Looking ahead, US $28bn 2yr FRN, and FOMC rate decision and presser, although not expected to be a major event.
• Nonetheless, investor will still give it some attention.
• Mar Bund futures (RX) up 33 ticks at 177.85 (L: 177.39 / H: 178.12)
• Germany: The 2-Yr yield is down 1.6bps at -0.739%, 5-Yr is down 2bps at -0.754%, 10-Yr is down 1.9bps at -0.552%, and 30-Yr is down 0.7bps at -0.123%.
• Mar BTP futures (IK) down 1 ticks at 151.06 (L: 150.84 / H: 151.24)
• Italy / German 10-Yr spread 1.1bps wider at 119.1bps
• Mar OAT futures (OA) up 17 ticks at 167.54 (L: 167.21 / H: 167.83)
• Spanish bond spread up 1.5bps at 62.1bps
• Portuguese PGB spread up 0.9bps at 56.6bpsGreek bond spread down 0.1bps at 122.1bps