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BONDS: TY & Gilt Futures Pierce Yesterday's Lows

BONDS

Some weakness evident in core global FI markets, with TY, Bund & gilt futures at fresh session lows. TY and gilt futures have pierced yesterday’s lows during the move.

  • A couple of factors seemingly at play here:
  • An uptick in oil and EUR natural gas prices.
  • Setup for French supply.
  • EGB spreads to Bunds generally wider, driven by the presence French supply and a downtick in equities, BTPs & OATs widen by ~2bp at the 10-Year point.
  • French fiscal headlines (covered earlier) another potential spread widening catalyst.
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Some weakness evident in core global FI markets, with TY, Bund & gilt futures at fresh session lows. TY and gilt futures have pierced yesterday’s lows during the move.

  • A couple of factors seemingly at play here:
  • An uptick in oil and EUR natural gas prices.
  • Setup for French supply.
  • EGB spreads to Bunds generally wider, driven by the presence French supply and a downtick in equities, BTPs & OATs widen by ~2bp at the 10-Year point.
  • French fiscal headlines (covered earlier) another potential spread widening catalyst.