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Stabilise, BTPs Tighten Post-ECB Review

EGBS

EGBs have stabilised alongside wider core global FI peers. German yields are 1.5-2.5bp higher on the day.

  • The outcome of the ECB’s operational framework review pointed to slightly easier refinancing conditions vs. most expectations. There were no notable hawkish surprises.
  • The larger than expected narrowing of the refi/depo rate corridor provided a slightly dovish feel in FI markets as Euribor futures edged away from lows.
  • Those moves were modest and have faded a little.
  • STIRs were already very relaxed on the funding front ahead of the release.
  • The outcome of the review/perceptions around funding matters also allow the early BTP/Bund tightening move to extend a little.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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