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Tightening Extends, French Sovereign Rating Updates Eyed

EGBS

Bunds lag most EGB peers during today’s recovery.

  • Peripheral spreads tighten further, with global FI markets bid in the wake of the U.S. PCE data, benchmark European equities rallying further and major credit benchmarks tighter.
  • 10-Year BTPs are ~5bp tighter vs. Bunds on the day, moving back below 135bp. A reminder that the tightening move in that spread ran out of steam around these levels earlier in the week.
  • Broader EGB focus falls on potential sovereign rating reviews for France after hours (click for greater details/colour).
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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