Free Trial

Core FI Rallies As Equities Take A Breather

BOND SUMMARY

Bunds and Gilts have moved slightly higher and periphery spreads are tighter in early trade, as equities have taken a breather from Wednesday's impressive rally.

The ECB decision today (1245BST) takes centre stage, preceded by EGB/Gilt supply. The ECB meeting should prove relatively uneventful, but it's still 'live' - contact us if you haven't seen our preview.

Apart from that, EU-UK trade intrigue could again prove a driver, with multiple reports that Brussels is considering legal action against London for potential breach of the Withdrawal Agreement.

French Jul industrial production disappointed, but there was a big beat for Italy (BBG released figures ahead of time).

Ireland sells up to E1.5bln, Italy up to E6.25bln, and the UK up to GBP5.25bln. ** Latest levels:

  • Dec Bund futures (RX) up 19 ticks at 173.87 (L: 173.54 / H: 173.88)
  • Dec Gilt futures (G) up 29 ticks at 136.19 (L: 135.89 / H: 136.2)
  • Dec BTP futures (IK) up 43 ticks at 145.47 (L: 145.02 / H: 145.51)
  • Dec OAT futures (OA) up 28 ticks at 167.65 (L: 167.27 / H: 167.67)
  • Italy / German 10-Yr spread 1.5bps tighter at 146.8bps

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.