November 14, 2022 17:11 GMT
EGBs-GILTS CASH CLOSE: ECB Dec Hike In Focus
European yields reversed a an early drop with a sharp rise in the afternoon, leaving them largely flat on Monday's session.
- ECB hike pricing faded and EGB yields fell mid-morning amid comments by ECB's Panetta (who said aggressive tightening is not advisable) and an MNI sources story pointing to a 50bp December hike with some risks of 75bp.
- A jump in equities in the afternoon put the pressure back on core FI, and yields erased most of their earlier drop, though largely shrugged off a dip in US yields toward the cash close.
- Periphery EGB spreads were mostly flat. Greece bucked the trend with sharp spread narrowing after a successful 10Y reopening operation.
Closing Yields / 10-Yr Periphery EGB Spreads To Germany
- Germany: The 2-Yr yield is up 0.9bps at 2.216%, 5-Yr is down 0.5bps at 2.082%, 10-Yr is down 1.3bps at 2.147%, and 30-Yr is down 0.9bps at 2.103%.
- UK: The 2-Yr yield is down 0.6bps at 3.159%, 5-Yr is down 0.8bps at 3.359%, 10-Yr is up 1bps at 3.368%, and 30-Yr is up 0.6bps at 3.497%.
- Italian BTP spread unchanged at 204.5bps / Greek down 18.3bps at 219.2bps
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