Off Bests

Core global FI markets have moved away from best levels of the day.

• While bookbuilds surrounding the previously outlined EGB syndications were sizeable (maintaining the early ’24 trend and promoting further tightening for peripherals), some focus may have turned to pre-emptive hedging flow ahead of the pricing of those deals, with the impending round of 10-Year U.S. supply also on the radar.
• Elsewhere, scheduled comments from NY Fed President Williams will garner plenty of attention later today, along with comments from ECB’s Schnabel & de Cos.
• Syndication-related pressure has resulted in underperformance for the longer end of the UK curve, although that move has moderated from early extremes.
• U.S. Tsy yields are 2-3bp lower across the curve.
• The German curve has twist flattened, with yields last +2.5bp to -2.0bp.
• UK yields sit ~1bp lower.