GERMAN DATA: Consumer Climate Sees Third Consecutive Decline In September
Aug-27 07:31
The German GfK consumer climate fell for the third consecutive time in the September advance reading, to -23.6 points, coming in below consensus which was for a -21.5 reading. The August print was revised slightly lower to -21.7.
- "The sharp decline in income expectations played a major role in this month's decline. By contrast, the propensity to save, which fell by only 0.6 points to 15.8 points, had only a marginal impact on the consumer climate this month. [...] A key reason for the noticeable decline in income expectations is likely to be growing concerns about job security."
- Business sentiment in Germany continues to be on an uptrend following the government's fiscal easing plans. This does not filter through to consumers so far.
- Private consumption growth in Germany slowed down but remained positive in Q2, at 0.1% Q/Q (0.6% Q1).
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EURIBOR: Some big Volumes in the back Calendar Spreads
Jul-28 07:25
- We noted some notable early flow in the Blue ERH9/M9 calendar spread, being sold down to 4.5 from a 5.5 record high printed last Week.
- There's now a whopping 34k ERM7/U7 spread seller, which explains the massive volumes in those expiries.
EGBS: Peripherals Outperform As Equities Rally
Jul-28 07:22
German yields are now 1.5-2.5bp lower across the curve, with the belly & intermediates outperforming.
- EGB spreads to Bunds are little changed to 1bp tighter, with the periphery outperforming as equities firm in the wake of the U.S.-EU trade deal.
- Ongoing adjustments to that deal and focus on the Sino-U.S. meeting in Stockholm are noted.
BONDS: Firmer Again
Jul-28 07:17
No fresh headlines as core global FI futures firm and equity index futures tick away from best levels. Bunds close the opening gap lower, while TY futures trade to the highest level seen since Wednesday.
- Note that Euro Stoxx 50 futures were not able to test early July highs, before a pullback from best levels accelerated around the cash equity open.
