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Watching The 50-Day EMA


Bearish Focus


Updated Barclays/Bbg Extension Estimates for US


Late Session Selling


Gilts and Bunds traded weaker but in fairly erratic fashion throughout Tuesday's session, with periphery EGB spreads tighter.

  • Italian spreads compressed, with optimism that stability will return following PM Conte's decision to resign this morning in order to form a new government.
  • Bund yields came off the highs late in the session with the EUR weakening on a BBG report: "ECB Studying If Differences With Fed Policy Are Boosting Euro".
  • Issuance was a key theme today with E14bn of E.U. SURE syndication (on books >E132bn!), and the UK, Netherlands and Italy holding auctions. We also had Greece, Austria, and Slovenia announce mandates.
Closing yields/10-Yr Spreads to Bunds:
  • Germany: The 2-Yr yield is up 0.4bps at -0.723%, 5-Yr is up 1bps at -0.734%, 10-Yr is up 1.7bps at -0.533%, and 30-Yr is up 2bps at -0.116%.
  • UK: The 2-Yr yield is down 0.5bps at -0.138%, 5-Yr is down 0.1bps at -0.063%, 10-Yr is up 0.3bps at 0.265%, and 30-Yr is up 0.4bps at 0.838%.
  • Italian BTP spread down 4.8bps at 118bps / Spanish down 1.7bps at 60.6bps
MNI London Bureau | +44 203-865-3807 |