EU CAPITAL GOODS: ABB: Legrand Interest   

Slovakia has announced it will be looking to sell the following at its auction next Tuesday, September 16:

• the 3.625% Jun-33 SlovGB (ISIN: SK4000023230)
• the 3.75% Feb-35 SlovGB (ISIN: SK4000022539)
• the 0.375% Apr-36 SlovGB (ISIN: SK4000018958)
• the 4.00% Feb-43 SlovGB (ISIN: SK4000022547)
  
   

Major EGB futures continue to inch higher, with OATs outperforming (+38 ticks at 121.87 today).

• Initial resistance in OATZ5 is the Aug 15 opening gap at 121.95, clearance of which would expose the Aug 14 high at 122.61.
• PM Bayrou will start delivering his general policy address to the National Assembly at 1400BST/1500CET.
• It is unlikely to be eventful, more of a formality ahead of his near-inevitable ousting later this evening.
• The 10-year OAT/Bund spread is 2.5bps tighter at 76bps today. Bayrou falling to the no-confidence vote is already in the price.
• We wrote earlier this morning that market prices may already incorporate an expectation for a new administration to make budget concessions. This may limit the scope for further OAT/Bund spread widening in the aftermath of the vote.

Bund, BTP and Gilt futures also registering fresh session highs in recent trade. Market moving headline flow remains light.