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/SWAPS: Commerzbank Retain Short ASW Bias

BUNDS

Commerzbank write “Bund collateral remains plentiful with GC, specials and BuBills all testing the lows vs €STR.”

  • “Combined with upbeat risk sentiment and diminishing prospects of major ECB remuneration adjustments, ASW-spreads are hitting new cyclical lows. The decoupling from rallying front-end rates underlines that ASW-specific factors rather than 'rates aversion' are at play.”
  • “We stay short as our models and fundamental arguments point to further downside, and the levels to watch remain 10bp for Schatz vs. €STR and 40bp for Bunds vs. 6m Euribor.”
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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