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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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Free AccessOAT: OAT/Bund Spread More Than Unwinds Yesterday’s Widening
Today’s OAT outperformance likely reflects an unwind of yesterday’s price action, which saw the 10-year OAT/Bund spread approach levels not seen since the midst of the late-June election uncertainty.
- The OAT/Bund spread is currently ~2bps tighter at ~77bps, with BTPs and Spanish Oblis seeing a more modest intraday narrowing.
- While recent risk-off moves have warranted a widening of spreads to Bunds, it is hard to justify OAT/Bund settling above 80bps without further developments around the domestic political/fiscal backdrop.
- French politics are on hiatus at least until the Olympics conclude on August 11, with PM Attal and the Cabinet still in place in a caretaker capacity.
- Upon the conclusion of the Games, markets will refocus on how the current political impasse can be resolved. Our political risk team have written on possible scenarios here: https://marketnews.com/politics-on-hiatus-as-olympics-get-underway
To read the full story
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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.