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Corrective Pullback


Light Upside Call Spds


Dips Considered Corrective


Trend Signals Remain Bearish

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A more subdued session for EGBs and Bund, with contract taking their cue from the Equity price action.

  • Bund has been better offered as Risk recovers from their worst levels. Peripheral spreads have all tightened against the German 10yr.
  • Greece by a decent 5bps, following ECB's Stournaras saying that he expects the ECB to buy Greek debt in APP after the end of PEPP.
  • Gilts have traded in line with Bund, initially wider by 0.6bp, but now 0.3 tighter at the time of typim.
  • Similar price action for Treasuries, with better selling on the margin on the back of higher Equities.
  • Looking ahead, we have no tier 1 data, nor speakers left for the session.
  • Later sees US Auction with $24bn 20yr.
  • US President Biden will be speaking with the Australian PM (Scott Morrison), and UK Johnson
  • Dec Bund futures (RX) down 12 ticks at 171.43 (L: 171.27 / H: 171.71)
  • Germany: The 2-Yr yield is up 0.7bps at -0.711%, 5-Yr is up 0.6bps at -0.629%, 10-Yr is up 1.4bps at -0.306%, and 30-Yr is up 1.7bps at 0.189%.
  • Dec Gilt futures (G) down 4 ticks at 127.41 (L: 127.21 / H: 127.5)
  • UK: The 2-Yr yield is up 1.2bps at 0.268%, 5-Yr is up 1.3bps at 0.476%, 10-Yr is up 1bps at 0.804%, and 30-Yr is up 0.6bps at 1.108%.
  • Dec BTP futures (IK) steady at at 153.73 (L: 153.73 / H: 154.02)
  • Dec OAT futures (OA) down 11 ticks at 167.74 (L: 167.63 / H: 168.05)