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Watch BTP/Bund spread

BUNDS

A tight cash open for Bund, with a flat curve.

  • A quick early HEADS UP on the BTP/Bund spread which is now trading below 100bps, and lowest level since January 2016.
Quick tech here:
  • Next support comes at 95.7015 (05/01/16 low), and 91.436 (02/02/2015)
  • Today sees very little in terms of tier 1 data for Europe at least.
  • Of course today is US NFP day.
  • SPEAKERS: BoE Bailey, Ramsden, Haldane and ECB de Guindos.
  • SUPPLIES: Belgium 5 and 10yr (small don't expect much delta hedging)
  • RATINGS; S&P on ESM

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