MNI: China CFETS Yuan Index Up 0.83% In Week of Dec 20

MNI: PBOC Net Drains CNY643.5 Bln via OMO Monday

MNI: PBOC Sets Yuan Parity Lower At 7.1870 Mon; -2.26% Y/Y

MNI China Daily Summary: Friday, December 20

MNI: PBOC Net Drains CNY103.5 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Lower At 7.1901 Fri; -2.13% Y/Y

EZ/UK Bond Supply Calendar: BOE APF Sales Due 6 January

EZ/UK T-Bill Calendar: Greece to Sell Bills Monday

EZ/UK Bond Supply Calendar: BOE APF Sales Due 6 January

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

BONDS: Bund and Gilt Futures Scale Away From Highs

BONDS
BulletMarketsFixed Income Bullets

Bund and Gilt futures have pulled away from intraday highs, pressured by a renewed uptick in crude oil futures and the continued recovery in European/UK equities from lows.

  • Bund futures are -33 ticks at 132.83. Highs of 133.14 were reached when Bank of Portugal Governor Centeno suggested a 50bp ECB cut was possible at upcoming meetings.
  • However, the bid lacked follow-through, with the comments aligning with Centeno’s traditionally dovish leanings.
  • ECB President Lagarde largely stuck to the October press conference script, and did not speculate on what it would take to cut by 50bps.
  • The BTP/Bund spread is a little wider today at 123.5bps. Today’s 7/30-year syndication has priced, seeing strong demand across both lines.
  • Gilt futures are -37 at 96.85. BoE Governor Bailey did not comment on monetary policy in his speech, while Greene’s rhetoric was in line with previous comments.
  • The 10-year Gilt/Bund spread is little changed today at 185bps.
  • Tomorrow’s EU and UK data calendar is light, leaving focus on Central Bank speakers once again.
161 words

To read the full story

Close

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.

Bund and Gilt futures have pulled away from intraday highs, pressured by a renewed uptick in crude oil futures and the continued recovery in European/UK equities from lows.

  • Bund futures are -33 ticks at 132.83. Highs of 133.14 were reached when Bank of Portugal Governor Centeno suggested a 50bp ECB cut was possible at upcoming meetings.
  • However, the bid lacked follow-through, with the comments aligning with Centeno’s traditionally dovish leanings.
  • ECB President Lagarde largely stuck to the October press conference script, and did not speculate on what it would take to cut by 50bps.
  • The BTP/Bund spread is a little wider today at 123.5bps. Today’s 7/30-year syndication has priced, seeing strong demand across both lines.
  • Gilt futures are -37 at 96.85. BoE Governor Bailey did not comment on monetary policy in his speech, while Greene’s rhetoric was in line with previous comments.
  • The 10-year Gilt/Bund spread is little changed today at 185bps.
  • Tomorrow’s EU and UK data calendar is light, leaving focus on Central Bank speakers once again.