BONDS: EGB/Gilt - Gilt/Bund spread widest since 1996
Sep-23 14:26
- Another really busy session across multi assets, after the UK set the tone for the UK markets this morning, with some continuation this afternoon.
- EGBs and Bund did bounce, as some Desks squared ahead of the weekend.
- The push higher was short lived, after US PMIs came above expectations.
- Peripheral spreads are all wider, Italy in the lead by 7.9bps.
- Biggest move is in the UK, with UK 10yr yield moves above the US 10yr today, first time since 2014
- Gilt/Bund spreads targets the 1996 high at 179.90, also the widest print since 05/10/1992, now at 176.3bps.
- Looking ahead, notable data for next week, include Japan Prelim PMI, German IFO (mon).
- Sweden PPI, US prelim Durable goods (tue).
- US Wholesale Inventories (wed).
- Spain/German CPI, US 3rd reading GDP/Core PCE (thu).
- Japan Employment/IP/Retail sales, China Manufacturing PMI, UK final GDP, French/EU/Italy prelim CPI, Polish CPI, US PCE core, MNI Chic PMI, final Michigan (fri).
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
BONDS: EGB/Gilt - Watch the Gilt/Bund spread
Aug-24 14:22
- EGBs and Bund remains under pressure once again today.
- Rate traders continue to price more aggressive hikes from the ECB, which has helped longer dated bonds lower.
- Desks have also favoured positioning for a Hawk Powell this Friday. Bund has so far found some support at 150.00, but better is seen at 149.87, which equates to 1.4% in 10yr Yield.
- Peripherals are mostly wider, but in small at the time of typing.
- Italy leads by just 1.7bp, and Greece is flat against the German 10yr.
- Watch the Gilt/Bund spread, cleared out the small resistance that was 128.9bps earlier, and now eye 133.16bps, the March and 2022 high, and also the widest print since 28th April 2016.
- Spread is at 131.2bps (6.1bps wider).
- Volumes in Gilt are dominated by spreads, first notice is on the 30th, but UK have a Monday Bank holiday, and investors will likely favour doing the majority by the weekend.
- Half the front month volume is spread related, roll pace stands at 30%
- Looking ahead, tomorrow sees German final GDP, US (2nd) GDP, and Core PCE.
MNI: US NAR JUL PENDING HOME SALES INDEX 89.8 V 90.7 IN JUN
Aug-24 14:00
- MNI: US NAR JUL PENDING HOME SALES INDEX 89.8 V 90.7 IN JUN
- US NAR JUL PENDING HOME SALES -1.0% MOM; -19.9% YOY
US TSY OPTIONS: BLOCK, Weekly Midcurve Put Spd
Aug-24 13:59
- 9,000 wk3 TY 114.5/115.5 put spds, 11 at 0949:02ET ref 117-13
Related bullets
Related by topic
Bond Market News
FI Bullets
Homepage Section
FX Bullets
