May 29, 2024 07:43 GMT
Wider As Core global FI Sells Off And Equities Soften
BTP
Higher core global FI yields and a related move lower in equities result in some modest BTP widening early today (2bp wider vs. Bunds).
- However, the 132bp mark vs. Bunds has capped the widening move for a second straight day.
- S&P 500 e-mini futures are probing yesterday’s lows, while Euro Stoxx 50 futures are through their own Tuesday base.
- Extensions lower there/fresh outright core global FI weakness would likely push BTPs a little wider still.
- 10-Year BTP futures have breached support at 116.94, with bears now eying the April 26 low (116.30).
- Zooming out, expectations surrounding imminent ECB easing continue to backstop spread widening episodes, at least for now.
- Tomorrow’s multi-tranche BTP supply is eyed, with this week’s EUR14.6bn of backflows set to aid takedown.
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