CANADA JUNE JOBS -1.4K VS FORECAST +20K, PRIOR +26.7K

MNI China Daily Summary: Friday, July 5

MNI BRIEF: PBOC Plans To Borrow Hundred Bln Yuan CGB - Press

MNI: PBOC Net Drains CNY48 Bln Via OMO Fri; Rates Unchanged

MNI: PBOC Sets Yuan Parity Lower At 7.1289 Fri; -0.35% Y/Y

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS FRI

MNI: BLS: NET PAYROLLS REVISIONS FOR MAY, APRIL -111K

US JUN AVERAGE HOURLY EARNINGS +0.3% Vs MAY +0.4%; +3.9% YOY

US JUN UNEMPLOYMENT RATE 4.1%

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

SocGen: Flow Picture Makes BTPs Vulnerable To A Change In Market Risk Sentiment

BTP
HomepageBond Market NewsBulletMarketsFixed Income Bullets

Societe Generale write “the market is not interested in sovereign risk… for now.”

  • “The BTP/Bund spread moves mostly with the Bund leg and is stuck in a low volatility regime.”
  • “The flow picture makes BTPs vulnerable to a change in market risk sentiment.”
  • “Foreign investors are gaining importance as marginal buyers of BTPs. But this flow may be fast to turn.”
  • “Retail appetite is declining. Domestic banks do not have much flexibility, while other domestic financial institutions could potentially step in, but this is only likely once the BTP/Bund spread widens enough.”
92 words

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.

Societe Generale write “the market is not interested in sovereign risk… for now.”

  • “The BTP/Bund spread moves mostly with the Bund leg and is stuck in a low volatility regime.”
  • “The flow picture makes BTPs vulnerable to a change in market risk sentiment.”
  • “Foreign investors are gaining importance as marginal buyers of BTPs. But this flow may be fast to turn.”
  • “Retail appetite is declining. Domestic banks do not have much flexibility, while other domestic financial institutions could potentially step in, but this is only likely once the BTP/Bund spread widens enough.”