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US vs Germany spread

BONDS
  • Treasuries continues to outperform Germany, and the spread is now 4.6bps tighter and through support at the 11th November low at 177.99bps.
  • Below the latter sees 5th November low at 173.17bps.

Recall overnight main drivers across multi assets:

  1. FT story: Moderna chief stated that the vaccine will struggle with the Omicron variants.
  2. Powell pre prepared testimony: "The recent rise in Covid-19 cases and the emergence of the omicron variant pose downside risks to employment and economic activity and increased uncertainty for inflation,”

Chart source: Bloomberg

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