Free Trial

Schatz ASW a Touch Tighter

BUNDS

The combination of dovish overtures (receiver-side flows) and discussions re: a smaller balance sheet from ECB’s Schnabel have facilitated some tightening in Schatz through Bund ASWs today, while Buxl swaps are a touch wider to little changed on the day.

  • Note that Schatz spreads have found a bit of a base with the auction now out of the way (some concession from session bests helped promoted solid demand).
  • Late Monday comments from German Chancellor Scholz helped ASW spreads tighter into yesterday’s close, as he outlined his optimism re: a budget solution being found soon.
  • Still, the German Federal audit office has flagged some questions re: the ’23 supplementary budget, underscoring the complexities of finding a viable solution to the issue.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

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.