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USDCAD TECHS

Pullback Considered Corrective

AUDUSD TECHS

Holding Above Recent Lows

US EURODLR OPTIONS

BLOCK, Large 3Y Midcurve Put Condor

BTPs Gain, Core Grinds Lower

EGB SUMMARY

A poor session thus far to start the week for Bunds, with Italian spreads headed lower.

  • Largely negative data in the morning (Spanish Mfg PMI and German retail sales, offset somewhat by a pickup in Italian PMI) saw little early reaction, with the direction of travel being mainly lower since then.
  • No clear driver: issuance picking up w mandates announced (Finland, Cyprus, Belgium); broader risk-on with equities rising and Italy political risks seen fading.

Latest levels:

  • Mar Bund futures (RX) down 16 ticks at 177.09 (L: 176.97 / H: 177.42)
  • Mar BTP futures (IK) up 35 ticks at 151.35 (L: 151.14 / H: 151.54)
  • Mar OAT futures (OA) down 13 ticks at 166.94 (L: 166.86 / H: 167.25)
  • Italy / German 10-Yr spread 3.9bps tighter at 112.2bps
MNI London Bureau | +44 203-865-3807 | tim.cooper@marketnews.com