SWITZERLAND: KOF Sees 0.3% - 0.6% Negative GDP Impact Of Announced US Tariffs

The MEF has bought back E5bln of the following BTP//CCTeus:

• E1.25bln of the 3.80% Apr-26 BTP at 101.334.
• E1.00bln of the 1.60% Jun-26 BTP at 99.696.
• E0.89bln of the 3.10% Aug-26 BTP Short Term at 101.188.
• E0.62bln of the 1.25% Dec-26 BTP at 99.074.
• E1.24bln of the 0.50% Apr-26 CCTeu at 100.437.

Gilts trade to fresh session lows before finding some support following solid demand and pricing metrics at this morning’s Mar-28 supply.

• Little of note on the news front since the London open, with the presence of this morning’s gilt and EGB supply, alongside fiscal concerns in both the UK & U.S., providing some pressure.
• Futures as low as 92.98, with yesterday’s opening gap higher closed.
• Bulls remain in technical control.
• Initial support at the 20-day EMA (92.78) untouched.
• Initial resistance located at yesterday’s high (93.76).
• Yields 2-4bp higher, curves biased steeper.
• Major curves pare a little of the Tuesday flattening that followed comments from BoE Governor Bailey, after he flagged the potential for a slowing of QT and suggested that related adjustments would be influenced by the recent steepening of the curve.
• SONIA futures lower and steeper given cues from the long end, last down 0.5-5.0 on the day.
• BoE-dated OIS through year-end is little changed, showing ~54bp of cuts through December.
• With only 4 meetings left in the year, further dovish cues, most likely via a further deterioration in the labour market, are probably required to generate a meaningful extension of the recent dovish move.
• Comments from BoE dovish dissenter Taylor due from 11:30 London (more to follow in due course).