EUR Market Wrap

• Bunds ended Friday 3-5bps cheaper out to 10yr against a quiet macro calendar and some hawkish central bank speakers later in the session (BOE’s Mann, ECB’s Holzmann). WoW the curve is now 14-16bps cheaper out to 10yr as markets continue to pare cut expectations.
• Main/XO tightened 1bp/7bp with Main flat WoW and just +0.5bp YTD at 58.7bp while XO tightened 1.6bp WoW to sit +10bp YTD at 321bp. BBG’s €IG/€HY cash indices printed-1bp/+21bp – within €IG 1-3yr spreads outperform med (now -12.6bp YTD vs. -4.4bp for 7-10yr) with all sectors slightly in the green.
• SXXP ended flat despite a 1.7% sell-off in the Food & Bev sub-index with Nestle -3% against the backdrop of a worsening cocoa supply outlook while Real Estate ended -1.5%, led lower by Balder as flagged on Friday.
• The Asian session has been quiet given the LNY holiday and the Japanese market closure means no cash UST trading. SXXP futures are -0.1% DoD.
• Up today we have:

Time C Event

08:00 EC ECB's De Cos

09:45 EC ECB's Lane

13:15 EC ECB's Lane

14:20 US Fed's Bowman

15:50 EC ECB's Cipollone

16:00 US NY Fed 1-Yr Inflation Expectations

17:00 US Fed's Barkin

18:00 US Fed's Kashkari

18:00 UK BOE’s Andrew Bailey

19:00 US Monthly Budget Statement