Syndications Dominate Newsflow

Gilts and BTPs seem to be the outperformers this morning with successful syndications in both markets seeing broadly positive moves in both cash markets and futures.

• Books have closed for the gilt syndication with overbooks of over GBP76bln (inc JLM interest of GBP9.7bln) with the new 15-year 0.625% Jul-35 gilt on offer. Books remain open in Italy with the latest update showing books over EUR64bln for the new 20-year Mar-41 BTP. In a heavy day for supply the Netherlands and Austria have also sold bonds via auctions.
• Elsewhere a fairly risk-off overtone to markets has seen core fixed income generally move higher and EGB peripheral spreads wider (with the exception of BTPs).
• There has been no top tier data but German import sales, Italian retail sales and Eurozone investment data have all been fairly disappointing this morning.
• TY1 futures are up 0-7+ today at 139-08+ with 10y UST yields down -2.6bp at 0.693% and 2y yields down -0.3bp at 0.142%.
• Bund futures are up 0.15 today at 173.86 with 10y Bund yields down -1.0bp at -0.473% and Schatz yields up 0.1bp at -0.704%.
• Gilt futures are up 0.28 today at 136.07 with 10y yields down -2.5bp at 0.222% and 2y yields down -2.6bp at -0.123%.