Free Trial

Core FI Off Session Lows, USTs Underperforming

BONDS

Global core FI has bounced from intraday lows in London trade, with most instruments now well above Monday's worst levels.

  • Some modest flattening in the UK and German curves, with the US underperforming / bear steepening slightly. Notably, US equities outperforming, with the dollar a little stronger.
  • With a quiet calendar on both the data (German GDP was revised higher in the final reading; US sees Richmond Fed and new home sales later) and speaker (ECB's Schnabel the only one scheduled) front, supply is the focus.
  • In Europe we had GBP3bln 5Y auction (which was weak), with Finland 5Y E3bln syndication underway and German 4bln 7Y Bund sale coming up. $60B of US 2Y Note on sale later.
  • Rolls are the theme in UK and US futures, running between 10-20% complete.

Latest levels:

  • Sep US 10-Yr futures (TY) down 1.5/32 at 134-05.5 (L: 134-01 / H: 134-07.5)
  • Sep Bund futures (RX) up 8 ticks at 176.97 (L: 176.66 / H: 177.01)
  • Sep Gilt futures (G) up 5 ticks at 130.18 (L: 129.93 / H: 130.25)
  • Italy / German 10-Yr spread 1.2bps tighter at 105bps

To read the full story

Close

Why MNI

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.