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PIPELINE

High-Grade Debt Issuance

USDCAD TECHS

Bulls Remain In Charge

AUDUSD TECHS

Southbound

Core Bonds are better offered

BOND SUMMARY

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 | fabrice.benhassine@marketnews.com