Free Trial

Light Twist Flattening Early Today, Corporate Supply & ECB’s Knot Eyed

EGBS

Bunds recover from worst levels of the day, even with the impending round of 10-year 2.60% Aug-33 supply eyed (EUR5bn).

  • Another swift start to the day for €IG supply and overhang surrounding Bund supply were touted as early sources of pressure for the space, which saw Bunds back from their post-German factory orders highs (prints were softer than expected).
  • Initial hawkish comments from ECB’s Knot provided some knee-jerk cheapening, before the details surrounding some of his more guarded/non-committal musings allowed the space to base.
  • ECB-dated OIS pricing is little changed to a touch firmer on the day post-Knot, off initial highs.
  • A downtick in oil & global equity benchmarks will have supported the longer end a little.
  • Bunds last -15, around 40 ticks off lows.
  • German cash benchmarks run 1bp cheaper to 0.5bp richer, twist flattening.
  • The German 5s30s curve moves back from yesterday’s multi-week steeps.
  • Most closely watched EGB curves see similar moves.
  • While most of the core/semi-core spreads vs. Bunds are little changed on the day, BTPs and GGBs narrow, with the former outperforming peers.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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.