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Some steepening fade

BUNDS

Bund sees some unwind in the outright contract and on the curve.

  • 5/30s trades bull flatter, but well above that initial target of Jan 2020 high.
  • The curve is still trending at the steepest levels since July 2019.
  • Equity (VGM1) is also seeing better buying since the EU Govies open, fading some of yesterday's selling.
  • Germany, France, Italy and Spain will restart using Astra as soon as today.
  • No tier 1 data for today, and on the speaker front sees ECB Panetta and Vasle

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