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Equities Edge Higher, Modest Spread Tightening

EGBS

The latest uptick in European equity benchmarks provides some tailwinds for the periphery.

  • Still, feedthrough remains modest, with spreads to Bunds less than 1bp tighter on the day.
  • Smooth passage of this morning’s supply removes one headwind for German paper.
  • 10-Year BTP/Bund & OAT/Bund spreads remain rangebound.
  • No tangible impact from ECB’s Panetta, who reaffirmed the likelihood of further monetary easing and the need for fiscal consolidation in Italy.
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The latest uptick in European equity benchmarks provides some tailwinds for the periphery.

  • Still, feedthrough remains modest, with spreads to Bunds less than 1bp tighter on the day.
  • Smooth passage of this morning’s supply removes one headwind for German paper.
  • 10-Year BTP/Bund & OAT/Bund spreads remain rangebound.
  • No tangible impact from ECB’s Panetta, who reaffirmed the likelihood of further monetary easing and the need for fiscal consolidation in Italy.