MNI BRIEF: Talks On France Budget Promising - EU Gentiloni

MNI INTERVIEW2: ECB Should Keep Trimming Balance Sheet-Kazaks

RPT-MNI POLICY: Cracks On MPC But Gradualism Holds

RPT-MNI INTERVIEW: Banxico To Continue Easing Through 25-Tapia

MNI BRIEF: Fed's Goolsbee Sees Rates 'A Fair Bit Lower'

MNI NBP WATCH: Rates Held As Energy, Wages Push Up Prices

MNI: EUROZONE AUG RETAIL SALES +0.2% M/M, +0.8% Y/Y

MNI: GERMANY AUG FACTORY ORDERS -5.8% M/M

MNI BOJ: 2 OUT OF 9 JAPAN REGIONS UP ECON VIEW FROM JULY

CANADA: Politics Week: Parliament Opens With Early Election Threats

AUSTRALIA: Albanese Lines Up Budget for May Election

AUSTRALIA: Albanese Lines Up Budget for May Election

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

EGBS: Bund Futures Weighed By Crude Oil, GBP Short-End Sell-off

EGBS
EurozoneBulletGlobalFixed Income BulletsRegionMarkets

Bund futures are -32 ticks lower at 133.60, pressured by a near-2% rise in Brent crude futures. 

  • Weakness in GBP STIRs also weighed on EGBs earlier this morning, but Gilt/SONIA futures have since stabilised.
  • German factory orders were skewed lower by large-scale orders (printing much weaker than expected at -5.8% M/M vs -2.0% cons), but the underlying trend remains weak.
  • Meanwhile, Eurozone August retail trade was also weaker than consensus on an annual basis at 0.8% Y/Y (vs 1.0% cons).
  • The German cash curve has bear flattened, owing to the earlier sell-off in the GBP short-end. 2s10s now sits below zero following Friday’s US-data driven flattening.
  • The 10-year OAT/Bund spread is 1.5bps tighter at 76bps. Details of the French 2025 budget will be presented on Thursday (Oct 9).
  • The spread is seemingly converging back towards ~75bps after last week’s fiscal tightening announcements, after hovering close to ~80bps before any concrete measures were put forward.
  • 10-year peripheral spreads to Bunds are biased a little wider, with European equities weakening. 
164 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.

Bund futures are -32 ticks lower at 133.60, pressured by a near-2% rise in Brent crude futures. 

  • Weakness in GBP STIRs also weighed on EGBs earlier this morning, but Gilt/SONIA futures have since stabilised.
  • German factory orders were skewed lower by large-scale orders (printing much weaker than expected at -5.8% M/M vs -2.0% cons), but the underlying trend remains weak.
  • Meanwhile, Eurozone August retail trade was also weaker than consensus on an annual basis at 0.8% Y/Y (vs 1.0% cons).
  • The German cash curve has bear flattened, owing to the earlier sell-off in the GBP short-end. 2s10s now sits below zero following Friday’s US-data driven flattening.
  • The 10-year OAT/Bund spread is 1.5bps tighter at 76bps. Details of the French 2025 budget will be presented on Thursday (Oct 9).
  • The spread is seemingly converging back towards ~75bps after last week’s fiscal tightening announcements, after hovering close to ~80bps before any concrete measures were put forward.
  • 10-year peripheral spreads to Bunds are biased a little wider, with European equities weakening.