EM CREDIT UPDATE: € Credit Close
Dec-05 16:06
- Bunds are closing 3-7bp wider with 2y/10y yields at 2%/2.11%. The bias was higher through the session and closing at the wides, with rate cut bets being pared back.
- €IG closes -3bp with beta compression, top performers up to 15 tighter.
- SXXP/SPX are +0.3%/-0.1% at 519pts/6079pts. €IG's biggest movers include Worldline SA/France (+5%), Forvia SE (+5%), Canadian Imperial Bank of Comm (+5%), Safran SA (-7%), Toronto-Dominion Bank (-6%).
- In primary deals from NIBCAP, PUPRIN and EUROB priced.
- Main/XO close -1.4bp/-4bp at 53.9bp/292bp.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
EGBS: Yesterday’s Range Contains Bunds, Schnabel Eyed Before US Election Results
Nov-05 16:03
Yesterday's range has contained Bund futures throughout the session.
- Futures are currently -24 at 131.56, with support beyond yesterday’s low (131.26) seen at 131.15 (Oct 31 low).
- German cash yields are up to 2bps higher today.
- German political/fiscal uncertainty remains present, with meetings amongst the traffic-light coalition set to resume tomorrow.
- After widening this morning, the 10-year BTP/Bund spread has tightened almost 4bps back below 125bps through the afternoon. The latest bid in equities alongside today’s pullback in EUR 3m10y swaption vol will have supported that move.
- The softer FI backdrop leaves Euribor futures -0.5 to -5.0 ticks through the blues, while ECB-dated OIS have seen light hawkish repricing through the day.
- Regional focus turns to ECB’s Schnabel’s speech (text to be released on the ECB's website) at 1830GMT/1930CET, with the US election results set to start filtering through from ~midnight UK time.
| Meeting Date | ESTR ECB-Dated OIS (%) | Difference Vs. Current Effective ESTR Rate (bp) |
| Dec-24 | 2.881 | -28.2 |
| Jan-25 | 2.606 | -55.8 |
| Mar-25 | 2.358 | -80.5 |
| Apr-25 | 2.212 | -95.1 |
| Jun-25 | 2.080 | -108.3 |
| Jul-25 | 2.025 | -113.8 |
| Sep-25 | 1.985 | -117.8 |
| Oct-25 | 1.978 | -118.5 |
| Source: MNI/Bloomberg. | ||
EURIBOR OPTIONS: Dec '24 Mid-curve Put Spread
Nov-05 15:56
0RZ4 97.75/97.50 put spread, paper pays 5.5 on +5k
EURIBOR OPTIONS: ERZ4 Put Ladder
Nov-05 15:54
From a little earlier: ERZ4 97.00 / 96.875 / 96.75 ratio put ladder (1x1.5x1). Sells the one for zero cost (-9k, +13.5k, +9k).
