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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.
BUNDS
The German 2s30s spread has risen from just over 55bp Friday morning (post-ECB) to a high of 78.5bp today, just under the Feb 1 intraday high but steeper than pre-ECB levels. This German re-steepening has been at odds with US / UK flattening over the same period, so will be interesting to watch this dynamic in coming weeks. Looking at both ends of the curve:
- 2s yields haven't quite retraced the yield rise post-ECB, up 11bp since then but that's a decent retracement from the 24+bp increase to -0.218% cycle high on Monday, as ECB rate hike expectations have cooled somewhat.
- 30s meanwhile continue to grind higher - while flat today, they're up 13.5bp from the start of Lagarde's press conference, and just 3bp off yesterday's high.
- Supply has been a factor (Germany and others in euroland issuing 30Y tenors this week), but will be interesting to see if this factor dissipates in coming weeks and recouples German curve dynamics with US and UK.
German 2s30s (bp)Source: BBG
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.
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