BONDS: Some activity in the Eurex Bobl Roll
May-29 07:53
* Bond Desks seem to take the Opportunity of the stable price action to initiate some Eurex rolls....
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
EQUITIES: Latest EU Bank Vol Options
Apr-29 07:53
- SX7E (20th Mar) 155^, sold at 44.4 in 7.5k.
- SX7E (19th Sep) 155^ sold at 38.2 in 6k.
MNI EXCLUSIVE: MNI discusses the difficulties faced by China's exporters
Apr-29 07:52
MNI discusses the difficulties faced by China's exporters --- On MNI Policy MainWire now, for more details please contact sales@marketnews.com
EGBS: Citi: EGB Spread Performance Looks Overdone, Keep BTP/OAT Wideners
Apr-29 07:45
Citi note that “last week’s de-escalation of trade wars and the reversal of threats against Powell helped tighten EGB spreads back to pre-‘Liberation Day’ levels”.
- Drilling down, they observe that “during this move, BTP/Bund has been better correlated with the top-left vol, outperforming vs. other euro risk assets (EUR equities/credit). This perhaps suggests a belief that the economic implications of tariffs for BTPs might be completely offset by additional ECB rate cuts and any substitution out of USD assets".
- However, they warn that “equities are now catching up and the residual of BTP/Bund on our fair value model has started to reverse its richness”.
- As a result, they suggest that “the next BTP move from here might be underperformance that is historically more consistent with these residual levels”.
- They conclude that “that BTP shorts are perhaps still an attractive hedge against any resurgence in tariff risks compared to the BBB corporate credit which might be better suited to position for further de-escalation. Therefore, we continue to hold onto our 10-Year BTP/OAT widener”.
