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US vs Germany. The 0.25% holds for now

BUNDS
  • Bund sees initial yield holding, likely some receiving interest at these levels.
  • Bund printed (as noted) a 165.37 low and a 0.251% yield high.
  • Early notable spread flow, has been in Tnotes/Bund spread, which looked to have found a short term base circa 168.77bps.
  • This level, is the unbroken tightest level since the start of November, and the spread is 2.5bps wider in early trade.
  • The spread was at widest level since May 2021 on the 26th January,, and has tightened circa 26bps since that date.

Chart source: Bloomberg

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