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Spread dominates the overnight session

BUNDS
  • A tighter overnight session for Bund, albeit still already 30 ticks range, but compared to the last sessions, we trade within ranges.
  • All the overnight volumes and since the cash open are all spreads, with 64k lots in December vs 53k in March.
  • Short term risk, remains to the upside, but there are already talks of FM desks positioning for a strong US NFP, which is seen by the supported Dollar, and to a lesser extend in Govies, as Tnotes trade closer to the lower part of the range.
  • Today sees Services PMIs, but will be final reading for France, Germany, EU UK and US.
  • More eyes will be on NFP and ISM Services.
  • SPEAKERS: ECB Lagarde, Lane, BoE Saunders, Fed Bullard.
  • RATINGs: Fitch on Italy, DBRS on Germany.

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