Bund Futures either side Of 133.00. Curve Bear Flattens

Bunds start the week in a narrow range either side of 133.00, a little above initial support at Friday’s YtD low (132.71).

• German cash yields are 1-6bp higher to start the week, with some bear flattening seen.
• EGB spreads are generally little changed to a touch narrower.
• Over the weekend France marked its ’24 GDP forecast down to 1%, along with a cut to fiscal spending (EUR10bn).
• Broader fiscal headlines saw the Estonian PM suggest that the EU should develop a plan to issue EUR100bn of bonds to fund the development of the defence industry.
• After hours on Friday saw Fitch affirm the Netherlands (AAA; Outlook Stable) & Belgium (AA-; Outlook Negative).
• The regional data docket is light to start the week, tomorrow’s ECB aggregated wage data presents the most immediate scheduled risk event of note.
• The EU will hold a bond syndication this week. We don’t have a strong conviction regarding which bonds will be on offer and the announcement could come as soon as today.
• Elsewhere, Slovakia will come to market with multi-tranche issuance today.
• A reminder that the holiday in the U.S. will thin out broader liquidity.