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EGBS: Spreads To Bunds A Little Wider With Equities Off Highs

EGBS
EurozoneBulletGlobalFixed Income BulletsRegionMarkets

10-year EGB spreads to Bunds are ~0.5bps wider today. Estoxx 50 futures are off intraday highs, but are only 0.1% below Friday's settlement levels. 

  • No sign of material outperformance in GGBs, after Moody’s changed Greece's sovereign credit outlook to Positive from Stable after hours on Friday (rating affirmed at Ba1).
  • Moody’s noted that the change reflected “an increased likelihood of sustained strengthening in banking sector health” and potential for fiscal strength to “improve faster than currently expected”.
  • The 10-year BTP/Bund spread tightened around 8bps through last week, now trading at ~137bps.
  • La Repubblica reported this weekend that the Italian Government is considering levying a tax on bank/insurers extra profits (see paywalled article here: https://www.repubblica.it/economia/2024/09/14/news/tassa_extraprofitti_banche_assicurazioni-423499551/).
  • The OAT/Bund spread remains below 70bps. PM Barnier is expected to continue trying to form his cabinet this week.
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10-year EGB spreads to Bunds are ~0.5bps wider today. Estoxx 50 futures are off intraday highs, but are only 0.1% below Friday's settlement levels. 

  • No sign of material outperformance in GGBs, after Moody’s changed Greece's sovereign credit outlook to Positive from Stable after hours on Friday (rating affirmed at Ba1).
  • Moody’s noted that the change reflected “an increased likelihood of sustained strengthening in banking sector health” and potential for fiscal strength to “improve faster than currently expected”.
  • The 10-year BTP/Bund spread tightened around 8bps through last week, now trading at ~137bps.
  • La Repubblica reported this weekend that the Italian Government is considering levying a tax on bank/insurers extra profits (see paywalled article here: https://www.repubblica.it/economia/2024/09/14/news/tassa_extraprofitti_banche_assicurazioni-423499551/).
  • The OAT/Bund spread remains below 70bps. PM Barnier is expected to continue trying to form his cabinet this week.