STIR: Dovish Adjustments In ECB Pricing As European Equities Soften
Dovish adjustments in EUR STIRs alongside the rally in wider core global FI markets, which comes wit...
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CROSS ASSET: Bonds and FX Month End Extensions
Bloomberg Bonds:
- US Tsys: +0.06yr (small).
- EU Govies: +0.09yr (decent).
- UK Govies: +0.22yr (HUGE).
MS Bonds:
- US Tsys: +0.07yr (average).
- EU Govies: +0.06yr (small).
- UK Govies: +0.15yr (large).
Barclays FX:
- Their Model indicates a Weak Dollar Selling signal vs all the Majors.
STIR: Commerzbank Do Not Thing Recent EUR Repo Richening Is A New Trend
In repos, Commerzbank note that “GC has turned better bid after German and Italian GC reached the highest spread vs. €STR in early July. Core GC has richened back to the most expensive level since January. Part of this may be due to the summer holiday season, the latest bond market sell-off fits the picture of investors selling bonds and holding cash/buying repos. We thus do not consider the latest moves to become the beginning of a structural richening trend and expect spreads to resume the moderate cheapening trend after the summer”.
US TSY OPTIONS: TYU5 106.25 Puts Sold
TYU5 106.25 puts 3K given at 0-01.
