BONDS: Italy vs Germany
Jun-03 13:08
- BTP is clear through support at 122.00 (psychological).
- A clear break below the latter, would open to 121.53 1.618 proj of the May 12 - 24 - 26 price swing.
- Italy continues to lead Europe to the downside, and the BTP/Bund spread has cleared that 2022 double that was noted at 205.10bps, and also through the 61.8% retrace of the 2020/2021 fall.
- Next upside is seen at 210.00, which is very close, with the spread trading at 208.8bps.
Chart source: MNI/Bloomberg
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STIR: Effective Fed Funds Rate
May-04 13:04
FRBNY EFFR for prior session:
- Daily Effective Fed Funds Rate: 0.33% volume: $79B
- Daily Overnight Bank Funding Rate: 0.32% volume: $260B
EQUITIES: Massive EU Bank option still trading
May-04 12:56
Bank option, trading again. More likely to be an unwind, but unconfirmed.
- SX7E (16th Dec) 87.5c trades 6.50 in 88k total
- SX7E (17/03/23) 87.5c trades 7.90 in 110k total
CANADA: Record Can-US Trade Surplus, USDCAD Ignores It
May-04 12:54
- The merchandise trade surplus was smaller than expected in Mar (C$2.49B vs cons 3.9B) as it narrowed from an upward revised C$3.08B in Feb.
- Imports were the main driver, jumping a further 7.7% M/M. The strength was broad-based across components and also driven by volumes up 7%, in a sign of an economy running with excess demand.
- The trade surplus with the US reached an all-time high, widening from $10.9B to $12.6B.
- Despite this, USDCAD is essentially unchanged on the release, sitting -0.26% on the day near the session low at 1.2809.
