Free Trial

Core EGBs have weakened and.............>

EGB SUMMARY: Core EGBs have weakened and peripheries have strengthened amid
modest relief over global trade tensions compared with Friday, though with the
caveat that trading volumes have been thin so far.
- Bunds remain near the lows of the day, weighed down by positive German data
this morning (including bullish Sentix investor confidence and export figures),
with the Sep8 future off 36 ticks at 162.46, 6 ticks above the low.
- Periphery EGBs have benefited from the risk-on tone, with Greek and Italian
10-year spreads over Germany narrowing by around 6bps and 8bps respectively. BTP
2s10s slightly steeper (up 2.4bps at 190.7bps) following Friday's flattening, as
2s have outperformed.
- Euribor futures are off slightly, with Blue contracts off 1.0-1.5 ticks.
Whites and Reds are largely unchanged.
- ECB President Draghi set to speak at the European Parliament at 1300GMT,
though market-moving statements unlikely as it is in his capacity as ESRB Chair.
- Supply could weigh on EGBs this week, with issuance picking up (Germany and
the Netherlands kick things off Tuesday) and no coupon or redemption payments. 

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.