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GBPUSD TECHS

Fresh Trend Lows

SNAPSHOT

Omicron & Yuan Matters Continue To Dominate Headlines

EURUSD TECHS

Remains Below Last Week’s Highs

US TSY FUTURES

FVH2 Blocked

EUROSTOXX50 TECHS

(Z1) Trading Near Recent Highs

BTP TECHS

(H2) Reversal Lower Exposes Support

Busy morning session

BOND SUMMARY

A busy start of the year for EGBs, and elevated volumes.

  • Bund spiked throughout the morning session, with buying seen across core and semi core.
  • Bunds extended gains post Spanish PMI, to push through the 178.00 figure, to print a 178.37 high.
  • Irish 10yr yield is tested new record low at -0.344%, while Spain and Portugal yields look edge back into negative territory
  • Given the faster bid move in Bund, peripherals trade wider versus the German 10yr, with Italy the widest by 3.3bps at 114.1bps.
  • Gilts took their cue from the better bid in Europe, and despite the vaccine roll-out set to start today, lock down concerns remains.
  • US Treasuries remains within overnight ranges, and trade a touch in the red at the time of typing, on the Risk on flow.
  • Looking ahead, US Mfg PMI is the notable data, but final reading, so unlikely to move the needle.
  • On the speaker front, Fed Evans, Bostic and Mester are scheduled, while for Europe, ECB Lane is the highlight.
  • Mar Bund futures (RX) up 61 ticks at 178.25 (L: 177.52 / H: 178.37)
  • Mar Gilt futures (G) up 25 ticks at 135.79 (L: 135.32 / H: 135.96)
  • Mar BTP futures (IK) up 21 ticks at 152.22 (L: 151.62 / H: 152.29)
  • Italy / German 10-Yr spread 2.9bps wider at 114.1bps
  • Mar OAT futures (OA) up 51 ticks at 168.37 (L: 167.76 / H: 168.46)
  • US 2-Yr yield is unchanged at 0.1211%, 5-Yr is up 0.5bps at 0.3655%, 10-Yr is up 1.5bps at 0.9282%, and 30-Yr is up 1.7bps at 1.6616%.* Mar 10-Yr futures (TY) down 3/32 at 137-31.5 (L: 137-26.5/ H: 138-02)
MNI London Bureau | +44 203-865-3806 | fabrice.benhassine@marketnews.com
MNI London Bureau | +44 203-865-3806 | fabrice.benhassine@marketnews.com