Bund Futures Tick Lower, GGBs Tighten

Bund futures grind lower, with some modest, intermittent influence from the SNB decision, which saw the Bank go with a 25bp hike (market pricing was finely balanced between a 25/50bp move, allowing a brief bid to creep in), and the more recent 50bp hike and guidance from the Norges Bank (market pricing was once again finely balanced between a 25/50bp step).

• That leaves the contract just off worst levels of the day, down 30 or so, while the German cash curve twist flattens, as the major benchmarks run 2.5bp cheaper to 0.5bp richer.
• The French & Dutch curves see a similar twist flattening move.
• Greek 10s tighten by ~4bp vs. Bunds (weekend elections in Greece are eyed, with the ruling party expected to post a strong performance and attain a majority after their showing in last month’s initial round of voting), while the remainder of the closely watched 10-Year peripheral spreads are flat to a touch wider on the day.
• ECB speak and Eurozone consumer confidence pads out the remainder of the regional docket today, although greater market influence could be drawn from Gilts in the wake of the impending BoE decision.