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THAILAND

Market Closure

JGBS

Nothing On Local Docket, Omicron Eyed

NZD

Underperforming

US EURODLR FUTURES

EDZ4/Z5 Steepener Flow

AUSSIE 10-YEAR TECHS

(Z1) Near-Term Strength Persists

EGBS
EGBS: EGBs open with a risk-on tone shrugging off the tension between the US and
the rest of the G7 nations, while Italy's new economy minister Tria has ruled
out leaving the Euro and would focus on structural reforms over deficit
spending. German 10-yr Bund yield is 2.7bp higher at 0.475%, while Bund/BTP
spread is 30.1bp tighter at 238.1bps.
- So far markets are not reacting to the fallout from the G7 meeting over the
weekend and are taking a look at more domestic events. Italy's finance minster
Tria has made the right noises and settled some European nerves with his
comments on Italy remaining in the Euro and has led to sharp fall in BTP yields
across the curve. The curve is bull steepening as short-end outperforms the
long-end.
- A number of key events this week to keep seen influencing markets with
Trump/Kim Jung-Un meeting tomorrow, Fed, ECB and BoJ monetary policy meetings
and key data from the UK.
- Euribor strip is mixed with blues contracts 2 to 2.5 ticks lower compared to
0.5 to 1.5 tick higher in whites.