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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.
BONDS
European bonds sold off Thursday on what was perceived as a hawkish signal from the ECB meeting, with periphery EGBs underperforming.
- The ECB's signaling hikes in July (25bp) and September (probably >25bp), with an open path to further hikes in order to quell inflation, helped short-end rate expectations sell off.
- July pricing was pared as a 50bp move was faded, but Sep thru Dec implied rates hit cycle highs.
- The German curve flattened accordingly, with the UK following suit.
- Italian 10Y reached the widest since May 2018 (+ bp) on the combination of incoming rate hikes and an apparent lack of progress on an anti-fragmentation tool (reinforced later in the session by a Reuters sources piece).
Closing Yields / 10-Yr Periphery EGB Spreads To Germany:
- Germany: The 2-Yr yield is up 13.4bps at 0.835%, 5-Yr is up 11.8bps at 1.195%, 10-Yr is up 7.6bps at 1.43%, and 30-Yr is up 3.4bps at 1.626%.
- UK: The 2-Yr yield is up 7.5bps at 1.855%, 5-Yr is up 8.2bps at 1.963%, 10-Yr is up 7.7bps at 2.323%, and 30-Yr is up 3.3bps at 2.491%.
- Italian BTP spread up 15.2bps at 217.3bps / Spanish up 6.5bps at 119.3bps
ECB Meeting Rate Pricing via OIS (%)Source: BBG, MNI
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.
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