CROSS ASSET: MONTH END EXTENSIONS (updated)
Jun-30 07:53
Bloomberg Bond:
- US Tsys: +0.07yr (small/average).
- EU Govies: +0.07yr (small average).
- UK Govies: -0.03yr (non event).
MS Bond:
- US Tsys: +0.06yr (small).
Sees largest extension in Belgium, followed by Germany and Ireland.
- EU Govies; +0.05yr (small).
- UK Govies: contracts (non event).
Barcap FX:
- They see moderate USD selling against all majors, and stronger signals vs the Yen.
Citi FX:
- They see USD selling.
- They sees Equity outflow.
Equities Citi:
- Their Quant model sees need for stock sales, bond buying.
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Historical bullets
BUNDS: Initial trendline holds
May-31 07:52
- Bund trendline still holds (posted on the open), as desks await the next set of Regional German CPI at the top of the hour.
- Latest flow is in Bobl spread, but still quite subdued in Bund.
- Next upside resistance for Bund is at 136.38.
- Equities have bounced off their lows, more of an unwind, but are still trading in the red.
- In Cash stoxx600, Food beverage & Tobacco, Auto/parts are the leading losers.
Chart source: MNI/Bloomberg
NOK: Focus Turns to Norway FX Purchases Update
May-31 07:51
- Worth watching the Norges Bank FX Purchases update for June due in just over 10 minutes time - follows the new series high in the NOK I-44 import-weighted exchange rate posted yesterday alongside the oil slide. This tilted the Q2 I-44 FX rate average to 122.10, 2.2% above the 119.50 assumption at the March MPR. These projections will be updated at the Jun22 rate decision.
- The May figure disappointed markets by confirming NOK 1.4bln in daily purchases over the course of the month - this ran counter to expectations NOK selling could shift to NOK buying in the coming months.
- SEB expect the Norges Bank to keep pace at NOK 1.4bln next month - providing little relief for the currency. They write that the revised budget leaves an implication that there will still be a need to convert NOK -> FX this year.
MNI EXCLUSIVE: Spanish Elections A Blow To EU Fiscal Reform-Officials
May-31 07:46
MNI looks at the implications of Spain's snap elections for hopes of a deal on EU fiscal reform -- on MNI Policy MainWire now, for more details please contact sales@marketnews.com.
