Tight Ranges As BoJ Hike Has Little Lasting Impact

Core/semi-core EGBs have traded in a tight range this morning, with spillovers from the BoJ's NIRP exit overnight having a limited lasting impact.

• The BoJ's rate hike had been anticipated by the time of the meeting and Bunds have held above Monday's low as a result, currently +13 ticks at 131.79, towards the middle of today's 32 tick range.
• Comments from ECB's Guindos and de Cos this morning aligned with the status quo, again noting the June meeting as the most likely for the first ECB rate cut.
• There haven't been any notable data releases thus far today, but syndications from the EU (Feb-50 Green EU bond) and Italy (May-36 BTPei) are ongoing.
• The German and French cash curves have lightly bull steepened while 10-year periphery spreads to Bunds are wider, with GGBs underperforming.
• The German ZEW survey highlights today's data calendar, though participants will also still have one eye on risk events scheduled later this week (the Fed tomorrow and the BoE/March flash PMIs on Thursday).