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(M1) Downtrend Remains Intact


(M1) Bearish Theme


(M1) Bearish Risk Remains Present


(M1) Remains Below Resistance At 172.12

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A very busy session saw an early move into safe havens fade, but Bunds and Gilts ended stronger nonetheless. Periphery spreads ended a little wider, with large demand for BTP syndication.
  • Syndications today: Italy sold new 50-yr BTP (E7bn) and tapped 7-yr syndication (E5bn) on combined books >E130bn; Portugal raised E4bn of 10-Yr PGB on books >E30bn. In auctions, Germany allotted E3.3bn of Bobl and UK GBP5bln total of Gilts.
  • In data, Spain March services PMI beat expectations, while Italy missed; both <50.
  • Afternoon attention was on dual press conferences by the EU and UK vaccine regulators on the AstraZeneca jab's potential links with blood clotting. EMA noting that vaccine's clots as a rare side effect, but otherwise no action taken, EU ministers to discuss at 1700BST. UK will offer under-30s an alternative (eg Moderna) but not expected to slow overall vaccine rollout.

Closing yields/10-Yr Spreads to Bunds:

  • Germany: The 2-Yr yield is down 0.2bps at -0.703%, 5-Yr is down 0.8bps at -0.657%, 10-Yr is down 0.8bps at -0.324%, and 30-Yr is down 0.4bps at 0.231%.
  • UK: The 2-Yr yield is down 1.1bps at 0.064%, 5-Yr is down 1.5bps at 0.358%, 10-Yr is down 2.4bps at 0.773%, and 30-Yr is down 2.2bps at 1.315%.
  • Italian BTP spread up 0.8bps at 101.7bps/ Spanish spread up 0.5bps at 66.6bps