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Move higher on French PMI, but not back on German print

EGBS
  • There has been an interesting dynamic in EGBs this morning. EGBs moved higher on the disappointing French PMI print, with peripheral spreads tightening. Presumably this was driven by hopes of a less hawkish ECB next week.
  • BTPs peaked at 146.39, a few ticks short of the 146.44 20-day EMA.
  • However, following the better than expected German PMI print we have not seen a notable pullback.
  • Next PMI data at 9:00GMT / 10:00CET will be watched as it will include a signal for how the remainder of the Eurozone is faring.

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