Free Trial

Eurex has technical difficulties and....>

EGB SUMMARY
EGB SUMMARY: Eurex has technical difficulties and opened late. When the markets
did open the Mar-18 Bund contract opened little changed and stayed flat early
on. However, the contract saw a sharp decline from 163.40 to 162.91 on flow
rather than news and stop-losses built.
- After briefly stabilising, the contract pared most of its earlier losses
reaching pull back highs of 163.33 on the back of weak US CPI data.
- The yield on the 10Y part of the German curve heads into the close of the day
+0.3bp at 0.317%. The yield curve pivoted with the Schatz yield lower and 10Y
higher; the 2-10Y spread rose 1bp to 105.4bp.
- The Italian election date has apparently been set for March 4 and talks of
dissolving the Chamber of Deputies and Senate around Dec 28th or 29th. This news
hurt BTPs all day, leading Bund-BTP 10Y 7.9bp wider at 147.3bp.
- Bund-EGB spreads were wider across the board. Ireland suffered from news that
Facebook was no longer booking non-US revenues through Ireland. French debt also
widened 2bp to Bunds, led by long end weakness.
- In Germany, SPD and CDU/CSU continued talks but with no hard news.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.