Trial now
USDCAD TECHS

Watching The 50-Day EMA

AUDUSD TECHS

Bearish Focus

MONTH-END EXTENSIONS

Updated Barclays/Bbg Extension Estimates for US

US TSYS

Late Session Selling

Sign up now for free access to this content.

Please enter your details below and select your areas of interest.

The recent bull flattening in core European FI accelerated Monday, with longer-end yields having one of their best sessions since March 2020.

  • Though there was no data or bond issuance Monday, risk-off was the order of the day, with equity indices dropping 2-3% and periphery spreads wider. Fears of COVID resurgence restraining the recovery was the proximate trigger, with the move accelerating as US traders came in.
  • While the move faded a bit in the last two hours of cash trade, we still closed at post-Feb 2021 lows for 10Y Bund and Gilt yields.
  • New BoE MPC member Mann said she doesn't expect currently high inflation to persist.
  • On Tuesday, ECB's Villeroy speaks, while Germany sells E4bln of Bund and UK sells GBP1.25bln of Oct-71 Gilt.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

  • Germany: The 2-Yr yield is down 0.7bps at -0.691%, 5-Yr is down 2bps at -0.656%, 10-Yr is down 3.3bps at -0.386%, and 30-Yr is down 4.4bps at 0.088%.
  • UK: The 2-Yr yield is down 3.7bps at 0.081%, 5-Yr is down 5.2bps at 0.276%, 10-Yr is down 6.6bps at 0.56%, and 30-Yr is down 8.2bps at 1.031%.
  • Italian BTP spread up 3.9bps at 109.9bps / Spanish up 2.3bps at 66.3bps