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(Z1)‌‌ Support Appears Exposed


BLOCK, 10Y Put Sale

BUNDS: The space was dragged higher by the soft Chinese trade data breakdown,
although volumes remain limited. Schatz +0.015, Bobls +0.090, Bunds +0.22. 
- The weekend saw ECB's Nowotny (one of the more hawkish ECB members) pointing
to a need for caution when the ECB finally embarks on its hiking cycle.
Elsewhere, Nowotny noted that he is unclear re: the duration of the current
German econ vol.
- Talk of a Deutsche Bank/Commerzbank tie up continue.
- Italy's Tsy minister attempted to play down worries re: recession.
- French President Macron stuck to his central reform agenda in an address made
over the weekend.
- Also worth noting that political uncertainty is evident in Greece, with the
junior coalition party leaving the ruling coalition over the weekend, with a
confidence vote in the government now scheduled for this week.
- Final Dec German CPI data is due Weds, with various ECB speakers due during
the week. The meaningful vote on Brexit will also draw attention & is scheduled
for Tues. Germany is set to come to market with 30-Year supply on Weds.
MNI London Bureau | +44 0203-865-3809 |