MNI China Daily Summary: Wednesday, July 10

MNI BRIEF: China To Investigate EU Trade Actions

MNI BRIEF: China June CPI Hits Three Month Low

MNI: PBOC Conducts CNY2 Bln Via OMO Weds; Liquidity Unchanged

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS WEDS

MNI: PBOC Sets Yuan Parity Higher At 7.1342 Weds; -0.53% Y/Y

MNI: US MBA: MARKET COMPOSITE -0.2% SA THRU JUL 05 WK

US MBA: REFIS -2% SA; PURCH INDEX +1% SA THRU JULY 5 WK

Indeed Wages Tick Higher, But Future Revisions Are Likely

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

/SWAPS: Commerzbank Still Prefer Spread Tighteners

BUNDS
BulletMarketsFixed Income BulletsHomepage

Commerzbank write “the push higher in swap spreads seems to have passed the turning point already.”

  • “Schatz invoice spreads are trading notably tighter again, decoupling from the relevant risk-off measures following the very close correlation until last week's peak.”
  • “Implied vols for remain stuck at the highs, as does 5y5y € ILS or other proxies for the inflation risk premium which are instrumental for ECB-expectations.”
  • “Ultra-long spreads had already been trading heavy beforehand.”
  • “In sum, this once more confirms our central view that collateral abundance changes the game for ASW-spreads.”
  • “Flight-to-quality certainly remains a widener, but with specialness dormant the other crucial ingredient for a self-reinforcing ASW/collateral spiral and hence sustained widening is missing - turning such episodes into good selling opportunities.”
122 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Commerzbank write “the push higher in swap spreads seems to have passed the turning point already.”

  • “Schatz invoice spreads are trading notably tighter again, decoupling from the relevant risk-off measures following the very close correlation until last week's peak.”
  • “Implied vols for remain stuck at the highs, as does 5y5y € ILS or other proxies for the inflation risk premium which are instrumental for ECB-expectations.”
  • “Ultra-long spreads had already been trading heavy beforehand.”
  • “In sum, this once more confirms our central view that collateral abundance changes the game for ASW-spreads.”
  • “Flight-to-quality certainly remains a widener, but with specialness dormant the other crucial ingredient for a self-reinforcing ASW/collateral spiral and hence sustained widening is missing - turning such episodes into good selling opportunities.”