BONDS: Core FI continues to bull steepen
Mar-24 10:17
- The big moves in core FI continue in line with the risk-off picture seen, particularly in European equities.
- 2-year yields are now all at least 23bp lower on the day in the US, Germany and UK, with Schatz the biggest mover (yields down 27bp at writing).
- 2s10s curves are around 10bp steeper on the day in Germany and the US with the steepening less explicit in gilts (around 3.5bp on the day).
- At present Bunds are trading around 139.36 (230 ticks higher on the day) but still around 90 ticks off Monday's high of 140.30.
- TY1 has broken through Monday's high of 116-24 and has just breached 117-00.
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EGB SYNDICATION: Luxembourg 10/20-year dual-tranche: Update
Feb-22 10:16
10-year:
- Maturity: 2 March 2033
- Guidance revised to MS+2bps area (from + 4bps area)
- Books in excess of E4.7bln (ex JLM interest)
- ISIN: LU2591860569
20-year:
- Maturity: 2 March 2043
- Guidance revised to MS+41bps area (from + 42bps area)
- Books in excess of E3.5bln (ex JLM interest)
- ISIN: LU2591861021
For both:
- Settlement: 2 March 2023 (T+6)
- Bookrunners: BCEE / BGL BNP PARIBAS / BIL / DEUTSCHE BANK (B&D/DM) / SOCIETE GENERALE
- MNI expects combined size of E2-3bln (most likely E2.5bln)
- Timing: Books remain open, today's business
From market source
GILT AUCTION RESULTS: Decent green auction
Feb-22 10:14
- That was a decent 30-year green gilt auction, particularly after yesterday's disappointing auction of the 0.50% Jan-29 gilt.
- The tail of 0.6bp is close to the 0.7bp tail seen at the last long-dated gilt auction (the 1.125% Jan-39 gilt on 8 February) while the LAP was above the mid-price immediately ahead of the auction.
- The 1.50% Jul-53 Green Gilt dipped a little following the auction result but is now trading above the LAP but below the average auction price.
ITALY AUCTION RESULTS: BTP-ST / BTPei
Feb-22 10:12
| 3.40% Mar-25 BTP Short Term* | 0.10% May-33 BTPei | |
| ISIN | IT0005534281 | IT0005482994 |
| Amount | E3.75bln | E1.5bln |
| Previous | E1.25bln | E1.75bln |
| Avg yield | 3.6700% | 2.1900% |
| Previous | 3.0300% | 2.0300% |
| Bid-to-cover | 1.51x | 1.43x |
| Previous | 2.39x | 1.42x |
| Avg Price | 99.5300 | 81.0700 |
| Pre-auction mid | 80.979 | |
| Prev avg price | 96.6200 | 82.2300 |
| Prev mid-price | 96.589 | 82.073 |
| Previous date | 26-Jan-23 | 26-Jan-23 |
| Previous ISIN | IT0005090318 | |
| Previous bond | 1.50% Jun-25 BTP |
