Free Trial

Core/Semi-core EGBs, especially.........>

EGB SUMMARY
EGB SUMMARY: Core/Semi-core EGBs, especially German Bunds, sold off rapidly just
before noon London time and have pretty much traded sideways since. German 10-yr
yield is last 1.8bp higher at 0.525% with the 2s/5s part of the yield curve bear
steepening by 1bp but 5s/30s bear flattening by 1bp.
- It appeared a newswire headline saying that US President Trump confirms CIA
Director Pompeo meeting with N.Korea leader Kim Jung-Un over Easter weekend was
the catalyst for the move lower as markets look for easing of tensions. Pricing
of a 7-yr KFW euro bond for E5bln then weighed on Bobl & Bunds late on.
- Earlier Bunds rose to session highs on back of surprise fall in UK inflation
and downward revision to Eurozone HICP. German 10-yr re-opening auction then
weighed on core markets however.
- Bund auction came in fully covered, only the third time in the last 7 auctions
and came with a 0.2bp premium.
- EMU periphery have outperformed Bunds with Italy the star performer on hope a
government can be formed in the near future. 10-yr Bund/BTP spread is 5.3bp
tighter at 119.9bps and tightest level since Sep 2016

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.