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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.
OAT
Semi-core 10s are generally tracking the uptick in Bunds. A reminder that backflows surrounding OAT coupons and redemptions (~EUR48.6bn) will become reinvestable as of Thursday, which will factor into price action later this week.
- OATs have unwound a little over half of their March/April widening vs. Bunds, after avoiding negative ratings action from Fitch & Moody’s in the interim.
- Many still expect some form of negative Franch rating action from S&P next week, which should limit the market impact from that scheduled update, guidance-dependent.
- News that France has mandated banks to launch a new 20-year OATei benchmark had no tangible impact on the space, with the announcement falling in line with MNI’s expectations.
Fig. 1: 10-Year OAT/Bund Spread (%)
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
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.
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