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Commerz Recommends Selling Schatz Vs. Bund In Invoice Spreads

BUNDS

Commerzbank write “domestic public deposits at the Bundesbank stood at €35bn in the last reporting week. At the same time, BuBills remain dormant, and the spread vs 6-month €STR has even dropped back to -20bp.”

  • “The corresponding Schatz outperformance vs. the ‘wings’ (i.e. against German repos and BuBills as well as against 10y and 30y Bund-spreads) is a pretty novel feature."
  • "At current levels selling Schatz vs. Bund spreads offers good tactical value in our view (invoice spread differential close to 4-month highs).”
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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