FRANCE AUCTION RESULTS: OATi / OATei

DUX2 107.10/106.60ps vs 107.7/108.10cs, bought the ps for 8.75 in 17.5k (adding)

• USD remains on the front foot, as Equities continue to slide.
• NZDUSD is through support, and further downside momentum, opens to the April 2020 low, at 0.5844.

• EGBs and Bund resumed their moves lower, after the big beat in German PPI set out the tone.
• This was combined by the Riksbank hiking their rates by 100bps.
• Bund now targets the June peak and highest print since January 2014, at 1.928%.This would equate to 140.84.
• Next support for the German 2yr Schatz, is at 1.721%, the June 2011 high.
• Reference 107.18 = 107.13.
• German curve fades the earlier bid, and bear flattens.
• Biggest move in peripheral is in the Greek/Bund spread widening by 14.4bps at one point, now by 11bps, following Moodys decision not to upgrade Greece last Friday.
• Gilt trades inline with Germany translating in a flat Gilt/Bund spread for the early session.Treasuries are getting dragged lower by Europe, but still lag, pushing the Tnote/Bund spread 5bps tighter but within the September range.
• US 10yr Real Yield rose to its highest level since 2011.While US 2yr Yield is highest since December 2007.
• Looking ahead, there's no tier 1 data for the session, with most investors waiting on the FOMC tomorrow.
• Speakers, only sees Lagarde left for the afternoon session.