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Pulling Away From Best Levels As Regional Issuance & Tsys Weigh, Twist Steepening Seen

EGBS

Regional supply dynamics, as Spain mandates banks for a round of long 10-Year supply and the impact of the pricing of EUR5bn of KfW paper becomes apparent, as well as spill over from weakness in U.S. Tsys, sees EGBs pare a chunk of their early Tuesday gains. Bund futures now operate ~15 ticks above yesterday’s settlement, ~65 ticks off session highs.

  • Bunds now twist steepen, with benchmarks running 4bp richer to 1bp cheaper, while some twist steepening starts to creep in across the broader EGB space.
  • Italy remains the regional underperformer at the 10-Year point.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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