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Off Best Levels As Crude & Equities Move Higher


EGBs have moved away from best levels, with the uptick in crude oil futures and equities helping unwind the early richening move.

  • Bund futures last show -10, with German cash benchmarks 1-2bp cheaper across the curve, in what has been a fairly parallel shift.
  • EGB spreads to Bunds are generally little changed to tighter.
  • Various rounds of ECB speak have been noted, with most pointing to the “appropriate” nature of current monetary policy settings given the current economic outlook. Some kept the door open to another hike if the data evolves in a manner that would warrant such a moie.
  • The usually dovish Centeno noted the need to be nimble re: adjusting policy settings based on data flow, while stressing the need to predictable re: policy settings.
  • Makhlouf suggested that BTP spreads will “absolutely focus” the Bank.
  • Finally, Holzmann once again flagged his support for a higher MRR re: banks late on Wednesday.
  • This morning’s BTP supply saw smooth enough digestion, although auction sizes were more modest than the recent norms.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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