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/ASW: Commerz Point To Risk Appetite & Repo Catch Up Re: Yesterday's Spread Tightening

BUNDS

In the wake of yesterday’s deposit remuneration confirmation from the ECB Commerzbank note that “this removes speculation of a further cut to the ceiling. As most reserves have already been remunerated at €STR-20bp under the Eurosystem Reserve Management Services, the flow impact and resulting impact on money markets and swap spreads should be limited.”

  • “Bund ASW spreads tightened noticeably yesterday, which was probably unrelated to remuneration adjustments but rather a catch up with relatively cheap repo valuations and supported by recovering risk sentiment.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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