Trial now

High-Grade Debt Issuance


Bulls Remain In Charge



Core Bonds are better offered


Govies are better offered during the European morning session, with better buying interest in Equities on the margin.

  • EGB's have stayed heavy, and Bund has led the way, weighted ahead of the German supply.
  • The 0% Aug-30 Bund serves as the 10-year benchmark and this will be the third auction this year.
  • At the last tap on 15 July, E4.14bn was allotted at an average yield of -0.46%, Buba cover of 1.80x and bid-to-cover of 1.48x.
  • German curve is bear steeper, while peripheral spreads are a touch tighter against German 10yr. Greece is the best performer at 2bps, with the spread at 151.9bps
  • Gilt, saw the UK GDP coming better than expected, keeping the future contract lower.
  • DMO sold GBP2.75bln nominal of 0.125% Jan-28 Gilt
  • Avg yld 0.151% (0.045%), bid-to-cover 2.88x (2.15x), tail 0.2bps (0.4bps), price 99.808 (100.597).
  • Treasuries are trading close to flat on the day, and the curve bear steeper, despite S&P futures being up 25 points.
  • Looking ahead, US CPI, AWE and budget statement are schedule, while Fed Rosengren, Kaplan and Daily will be the speakers for today.
MNI London Bureau | +44 203-865-3806 |