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Euribor calendar spreads hover at session lows, Equities bounce

CROSS ASSET
  • The Euribor calendar spread are less active today, and although the ERZ4 vs H5/M5/U5 are off the record lows, the ERZ4 vs Z5/H6/M6/U6 are still hovering at new spreads low, albeit have traded in much smaller size today.
  • Some Desks look to discount further cut this Year post the ECB September cut, while looking for more cuts into 2025, and 2026, the red and the green strip.
  • EGB's and Bund have traded in more limited ranges today, still only 29 ticks in Bund, as traders focus on the supply and Issuance.
  • Equities are also seeing two way price action, extended higher in early trade, fell to their respective lows, and are once again finding a bid now, but not seen any standout size flows on the bounce.

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