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EGBS: Spreads To Bunds Little Changed To A Touch Wider As Equities Tick Lower

EGBS

Spreads to Bunds within 1bp of yesterday’s closing levels, with weakness in e-mini futures since yesterday’s close and a downtick in European equities probably promoting modest widening against the outright bond rally.

  • No tangible widening in RAGBs after media reports pointed “at least a temporary halt” in coalition government discussions between the right-wing FPÖ and conservative ÖVP. Both parties have since noted that discussions are set to continue today, limiting the market fallout.
  • Similarly, no meaningful, lasting reaction to the PMI readings, with a mark lower in the French final services PMI providing the most notable takeaway.
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Spreads to Bunds within 1bp of yesterday’s closing levels, with weakness in e-mini futures since yesterday’s close and a downtick in European equities probably promoting modest widening against the outright bond rally.

  • No tangible widening in RAGBs after media reports pointed “at least a temporary halt” in coalition government discussions between the right-wing FPÖ and conservative ÖVP. Both parties have since noted that discussions are set to continue today, limiting the market fallout.
  • Similarly, no meaningful, lasting reaction to the PMI readings, with a mark lower in the French final services PMI providing the most notable takeaway.