Trial now
SHORT-STERLING OPTIONS

SONIA Call Ladder Buyer

EURIBOR OPTIONS

Mixed Earlier Trades

BONDS

Driven by two Ps: Pill and PMIs

COMMODITIES

Energy Gaining

EQUITIES

Nasdaq Underperforming, S&P Futs Off Record Highs

BOND SUMMARY

The Bund and Gilt curves continue to enjoy modes bull flattening with early gains Wednesday, while periphery spreads have maintained Tuesday's tightening.

  • Earlier, ECB's Panetta said he saw no justification for PEPP purchase pace slowing.
  • ECB's Villeroy follows up Tuesday's characteristically dovish and modestly market-moving appearance w an appearance at 1000BST at the French National Assembly.
  • Some attention on ex-PM Johnson aide Cummings giving evidence (expected to discuss gov't pandemic policy failings etc) to MPs at 0930BST.
  • Italy sells up to E4.75bln of short-term BTP and BTPei; Germany sells E2.5bln of Bund.
  • French Confidence data beat expectations; no further Tier 1 data today.

Latest levels:

  • Jun Bund futures (RX) up 25 ticks at 169.94 (L: 169.69 / H: 169.98)
  • Jun Gilt futures (G) up 11 ticks at 128.42 (L: 128.36 / H: 128.48)
  • Jun BTP futures (IK) up 30 ticks at 147.05 (L: 146.85 / H: 147.13)
  • Italy / German 10-Yr spread 0.6bps tighter at 112bps
MNI London Bureau | +44 203-865-3807 | tim.cooper@marketnews.com
MNI London Bureau | +44 203-865-3807 | tim.cooper@marketnews.com