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EURIBOR: Z4/Z6 Spread Extends Yesterday's Steepening

EURIBOR
EurozoneBulletGlobalFixed Income BulletsRegionMarkets

Aforementioned selling pressure in the Euribor strip has seen the Z4/Z6 calendar spread extend yesterday’s steepening. The spread trades at -79.0 ticks, above the Aug 27 high of -79.5.

  • H5/H6 has also risen above -40.0 ticks for the first time since early August.
  • Euribor futures are -2.5 to -8.5 ticks through the blues, with the reds under the most pressure.
  • ECB VP de Guindos did not express a view on whether an October cut was appropriate (in line with his comments earlier this week) and stressed that the ECB cannot yet claim victory on inflation.
  • He re-iterated the importance of the “wages, profits and productivity” nexus in gauging medium term inflation pressures - a notion that has taken the backseat amongst ECB-speakers in recent weeks following the weak September flash PMI/inflation outcomes.
  • Spill over from U.S. NFP data remains the key focus for European markets this afternoon.
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Aforementioned selling pressure in the Euribor strip has seen the Z4/Z6 calendar spread extend yesterday’s steepening. The spread trades at -79.0 ticks, above the Aug 27 high of -79.5.

  • H5/H6 has also risen above -40.0 ticks for the first time since early August.
  • Euribor futures are -2.5 to -8.5 ticks through the blues, with the reds under the most pressure.
  • ECB VP de Guindos did not express a view on whether an October cut was appropriate (in line with his comments earlier this week) and stressed that the ECB cannot yet claim victory on inflation.
  • He re-iterated the importance of the “wages, profits and productivity” nexus in gauging medium term inflation pressures - a notion that has taken the backseat amongst ECB-speakers in recent weeks following the weak September flash PMI/inflation outcomes.
  • Spill over from U.S. NFP data remains the key focus for European markets this afternoon.