MNI BRIEF: BOJ Needs To Raise Rate To Neutral 1% - Tamura

MNI: PBOC Net Injects CNY97.5 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Higher At 7.1214 Thurs; +2.25% Y/Y

CHINA PBOC CONDUCTS CNY160.8 BLN VIA 7-DAY REVERSE REPOS THURS

CHINA SETS YUAN CENTRAL PARITY AT 7.1214 THURS VS 7.1182

MNI China Daily Summary: Wednesday, Sept 11

MNI: JAPAN AUG CORP GOODS PRICE INDEX +2.5% Y/Y; JULY UNREV +3.0%

EZ/UK Bond Supply Calendar: Ireland, Italy, UK Due Thursday

US EIA: CRUDE OIL STOCKS EX SPR +0.83M TO 419.1M SEP 06 WK

AUSTRALIA: Albanese Lines Up Budget for May Election

AUSTRALIA: Albanese Lines Up Budget for May Election

UK: Week Ahead

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

EGBS: 10-year Spreads Tighten On French PM Announcement

EGBS
EurozoneBulletGlobalFixed Income BulletsRegionMarkets

10-year peripheral spreads to Bunds have tightened following the announcement of Michel Barnier as the new French PM, with high-beta BTPs outperforming. The BTP/Bund spread is around ~141.5bps, ~2bps tighter today.

  • Earlier, BTP futures were unmoved by news that the Italian Government aims to bring its deficit below the EU’s 3% threshold by 2026, with similar reports having already been released by Bloomberg and Reuters last week.
  • Key resistance in BTP futures remains at 119.90, the August 22 high and bull trigger.
  • Bloomberg consensus sees the Italian budget deficit at 3.7% of GDP by 2026, well above the targeted 3% level.
  • The DEF’s current 2025 deficit forecast of 3.7% also appears optimistic in the eyes of consensus, which expects a 4.1% outturn.
119 words

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.

10-year peripheral spreads to Bunds have tightened following the announcement of Michel Barnier as the new French PM, with high-beta BTPs outperforming. The BTP/Bund spread is around ~141.5bps, ~2bps tighter today.

  • Earlier, BTP futures were unmoved by news that the Italian Government aims to bring its deficit below the EU’s 3% threshold by 2026, with similar reports having already been released by Bloomberg and Reuters last week.
  • Key resistance in BTP futures remains at 119.90, the August 22 high and bull trigger.
  • Bloomberg consensus sees the Italian budget deficit at 3.7% of GDP by 2026, well above the targeted 3% level.
  • The DEF’s current 2025 deficit forecast of 3.7% also appears optimistic in the eyes of consensus, which expects a 4.1% outturn.