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Bund Moves Set The Pace, Steepener Block Flow Seen

US TSYS

Bund gyrations have been at the fore since the Asia-London handover, with the initial push higher faded as brisk €IG supply capped rallies.

  • That leaves cash Tsys ~1bp richer across the curve, while TY futures are +0-03+.
  • The recent FV/US steepener block flow (+6,330/-2,000) had little meaningful impact on the curve.
  • Macro headline flow has been light, with Chinese matters and contained, two-way flow in equity futures catching the eye thus far.
  • FOMC-dated OIS indicates terminal rate levels of ~5.50% come November, with ~40bp of cuts then showing through June ’24.
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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