Free Trial

Most Curves Twist Flatten On The Day

EGBS

Bund futures are still below settlement as of typing, albeit off of worst levels, last -15 or so. Still, bears have failed to capitalise on the break of yesterday’s low in the contract, at least in the immediate term, with that impulse fading. Wider German cash trade sees 3bp of cheapening to 1bp of richening as the curve twist flattens, with the short end remaining under pressure as ECB-dated OIS nudges higher and the Euribor strip holds the early cheapening move.

  • Wider core/semi-core EGB curves also twist flatten, with the same holding true on the bulk of the peripheral curves, with long ends off session cheaps in the main.
  • Most of the Spanish & French supply is now in the rear-view (with only inflation-linked paper from France left to be sold).
  • The details of the Spanish supply were mixed, with close to the full amount on offer sold with stop prices topping the pre-auction mids. However, the volume of bids was a bit disappointing.
  • On the French side, demand was deemed average.
  • Core & semi-core spreads vs 10-Year bunds are essentially unchanged on the day, as are peripherals.
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.