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Commerzbank Flag Long End Pressures In Europe

BONDS

Commerzbank write “the ultra-long end also remains in focus. The DFA announced it will tap the new 30y Bund already on Wednesday (alongside the already scheduled tap of the Bund Aug-53), adding another €1bn in supply which markets will have to absorb.”

  • “With the ALM-bid still subdued, there is no respite for 30y Bund spreads even at the cheapest level on record (excluding the post-Lehman distortion from forced receiving).”
  • “The picture looks similar in semi-core and SSAs where the spreads of 30y benchmarks are also testing the all-time highs, and where the steepening pressure on credit curves also looks set to stay despite the historically low Bund premium.”
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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