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Core FI takes a leg lower post-German HICP and Amazon announcement

BONDS
  • Some weakness here in core FI, particularly Bunds - possibly a delayed reaction to the HICP print (which didn't show the weakness expected after the state CPI data that was reflected in the national CPI print only).
  • Possibly also some weight from the announcement of the Amazon 5-part bond sale.
  • Bunds are around 60 ticks off their pre-HICP levels at just over 141.00 (which is retracing around half of today's gains).
  • TYH3 moves lower in two steps, first on the German national CPI coming in line with regional releases but the Harmonized print faring stronger, and then accelerating after headlines that Amazon is kicking off a five-part dollar bond sale. Now trades unchanged at 113-08, moving closer to session lows of 113-03+ having almost fully unwound the German regional CPI bid.

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