MNI DEC CHICAGO BUSINESS BAROMETER 36.9 VS NOV 40.2

MNI: China CFETS Yuan Index Down 0.13% In Week of Dec 27

MNI: PBOC Net Drains CNY20.5 Bln via OMO Mon

MNI: PBOC Sets Yuan Parity Lower At 7.1889 Mon; -2.13% Y/Y

MNI China Daily Summary: Friday, December 27

MNI: PBOC Net Injects CNY6.2 Bln via OMO Friday

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

MNI: US NAR NOV PENDING HOME SALES INDEX 79 V 77.3 IN OCT

MNI: SPAIN DEC FLASH HICP +0.4% M/M, +2.8% Y/Y

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

BUNDS: /SWAPS: German ASW Widening Early Today

BUNDS
BundesbankCentral Bank NewsCEEMEAEurozoneGermanyBulletMarketsFixed Income Bullets

German ASWs moved off early session lows alongside bonds.

  • Spreads vs. 3-month Euribor now 0.8-1.7bp wider on the day, with the Schatz and Bobl spreads leading the widening.
  • Last week’s highs are providing some limits to widening episodes across much of the German curve, after a recovery from cycle/all-time lows.
  • Looking forwards (covering wider EUR FI markets), Commerzbank note that “profit taking (also with the roll approaching) seems as relevant as risk-off for swap spreads.”
  • They suggest that “while invoice spreads should hover around these levels into year-end, also helped by the lack of ultra-long issuance and potential for lower 30-Year syndications in the upcoming 2025 calendars, we expect the ultra-long cheapening and underperformance vs. Schatz to resume next year once issuance gets going. Short 30-Year OATs (or EU) vs. swaps remains one of our top structural trades for 2025.”
136 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.

German ASWs moved off early session lows alongside bonds.

  • Spreads vs. 3-month Euribor now 0.8-1.7bp wider on the day, with the Schatz and Bobl spreads leading the widening.
  • Last week’s highs are providing some limits to widening episodes across much of the German curve, after a recovery from cycle/all-time lows.
  • Looking forwards (covering wider EUR FI markets), Commerzbank note that “profit taking (also with the roll approaching) seems as relevant as risk-off for swap spreads.”
  • They suggest that “while invoice spreads should hover around these levels into year-end, also helped by the lack of ultra-long issuance and potential for lower 30-Year syndications in the upcoming 2025 calendars, we expect the ultra-long cheapening and underperformance vs. Schatz to resume next year once issuance gets going. Short 30-Year OATs (or EU) vs. swaps remains one of our top structural trades for 2025.”