ECB: Nothing On MonPol In Lagarde Speech On Regional Integration
Jun-19 07:36
ECB President Lagarde’s speech titled “Strengthening economies in a stormy and fragmenting world” is here. There’s nothing on near-term Monetary Policy in the speech.
Some highlights:
- “While deeper integration increases the potential rewards, it also raises the risks if not managed wisely. Sound domestic policy frameworks are essential to maximise growth and safeguard stability”.
- “The benefits of integration are neither automatic nor permanent. Maintaining them depends on continuous reform – but reforms must also deliver tangible improvements for people’s lives, and do so relatively quickly”.
- “The first is that if integration is not accompanied by appropriate reforms, it can create new vulnerabilities – especially in the financial sphere. Financial integration often brings volatile capital inflows, which can make it difficult to distinguish sustainable growth from unsustainable excesses in real time”.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
GILTS: Follow Wider Core FI Higher, 30-year Syndi Expected Today
May-20 07:35
Gilt futures extend higher alongside core FI peers, now +28 ticks today at 91.78 and outperforming Bunds. As noted above, there hasn’t been an obvious fundamental driver of the latest bid. A bear cycle in Gilts remains in play following the recent impulsive selloff, and rallies short of the 20-day EMA at 92.20 will be considered corrective. Initial resistance shielding this level is 92.03, the May 16 high. Yesterday’s low at 90.86 provides support.
- 10-year yields are down 3.7bps to 4.63%, with the Gilt/Bund spread tightening 1.5bps to 205.5bps.
- The curve has lightly bull flattened, with 2s10s down 1bp and 10s30s down 0.5bps.
- The DMO is expected to launch the new 5.375% Jan-56 gilt today. MNI expects a GBP5.5-8.5bln transaction size.
- Yesterday evening saw BoE’s Dhingra outline the thought process behind her dovish dissent last week, telling the FT that "I get to pick times when I want to be able to make a more categorical statement about where I think the economy is headed”.
- Comments from BoE hawkish dissenter and chief economist Pill are due this morning (09:00). He previously noted that he will flesh out the thoughts that drove his hawkish dissent at this event.
- UK CPI data, due tomorrow, headlines this week’s UK data calendar. MNI’s preview will be out later this morning.
EURIBOR OPTIONS: Outright Put sellers
May-20 07:32
- ERM5 97.87p, sold at 1.25 in 10k.
- ERM5 97.81p, sold at half in 20k.
BONDS: Some order buying flows going through in Bonds
May-20 07:27
- Just some order flows in Govies on this small spike, Schatz was bought in 7k, Bobl 5k, Bund 10k and in the US, USM5 1k, FVM5 5k, and TYM5 4k.
- As noted on the Bund open, the contract still targets that 130.76 gap mentioned last Week.
Related bullets
Related by topic
EUR/USD
Bunds
Germany
Euribor
European Central Bank
Schatz
Bobl
Trending Top
Jan-30 21:43
Jan-30 21:11
