EGB Mandates & $IG Supply Cap Rally

Little to really note when it comes to macro news flow over the last couple of hours, with the syndication announcements out of Europe (a GGB mandate was expected this week, while the German mandate was on the radar albeit not generally expected until February) helped temper the early rallies.

• A reminder that the initial core global FI rally was largely linked to dovish ECB speak (from the “influential” Villeroy and usually dovish Centeno) and heightened geopolitical tension.
• This more than countered modest hawkish pushback from those that typically position themselves on the hawkish side of the GC spectrum.
• Some $IG benchmark issuance may also be helping cap/counter the rally (a new 7-parter deal from IBM has recently been announced, amongst others).
• Cash Tsy yields are 1.5-3.0bp lower on the day, with 10s outperforming.
• German yields are 3-6bp lower with 5s outperforming on the aforementioned ECB speak.
• Peripheral 10-year spreads vs. Bunds are mixed, but within ~1bp of closing levels.
• Gilts sit 2.0-4.5bp lower, with 10s outperforming.