June 05, 2024 14:57 GMT
EGBS: Short Of Intraday Highs As North American Matters Dominate
EGBS
Bunds are just short of intraday highs as markets digest this afternoon’s North American macro events, with futures currently +21 at 131.35.
- The ISM survey consisted of a stronger than expected headline reading and a slight moderation in the rate of expansion in prices paid, providing conflicting signals for markets.
- While there was limited reaction to the dovish-leaning BoC decision, the initial comments at the subsequent press conference have supported bonds.
- Bunds reached intraday highs of 131.55 around the time of the ISM print before fading.
- After some volatility around the data, 10-year BTP/Bund spreads have returned to intraday tights, around ~3bps narrower on the day, printing ~130bps.
- Regional focus turns to tomorrow’s ECB meeting, where a 25bps cut is firmly expected.
- Supply from Spain and France is also scheduled tomorrow morning.
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