BONDS: Some cumulative buying going through
- Some cumulative lift in Treasuries, potentially some short term short cover.
- TYA bought in 3k and FVA in 2.5k.
- TYU2 is still very short of yesterday's high, and small resistance moves down to 120.00+.
Also more blocks goes through:.
- FVU2 4.5k at 112.2825.
- FVU2 6k at 112.30.
- Bobl: OEU2 5k at 127.08
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US TSY OPTIONS: Put spread buyer
TYQ2 115/114ps, bought for 10 in 6k
ECB: New Schedule For Monetary Policy Releases And Pressers
The ECB announces the following change to its release schedule for monetary policy decisions, starting from Jul 21 (which is the date of the next Governing Council mon pol meeting):
- Monetary Policy decisions published at 1415CET (1315UK, 0815ET), vs 1345CET prior
- Press conference beginning at 1445CET (1345UK, 0845ET), vs 1430ET prior
- Related documents to be published at 1500CET
- Monetary policy meeting dates remain unchanged
EUROZONE ISSUANCE: EGB Supply For W/C June 27, 2022 - Bobl Coupon Announced
The EU, Germany, and Italy are due to sell bonds this week. We look for estimated gross nominal issuance of E14.5bln, down from the E17.7bln (ex retail BTP Italia) sold last week.
- The EU will kick off issuance for the week today with up to E2.5bln of the 4-year 0% Jul-26 EU NGEU (ISIN: EU000A3KTGV8) on offer.
- Tomorrow, Germany will look to launch its new 1.30% Oct-27 Bobl (ISIN: DE0001141869). E4bln will be on offer.
- On Thursday, Italy will look to sell 5/10-year BTPs and CCTeu. MNI expects reopenings of the 5-year 1.10% Apr-27 BTP (ISIN: IT0005484552), the 2.50% Dec-32 BTP (ISIN: IT0005494239) and the Oct-30 CCTeu (ISIN: IT0005491250). Details will be announced this evening.
NET NOMINAL FLOWS: There is only a negligible redemption of E0.1bln with coupon payments of E1.1bln due. Together with estimated gross nominal issuance of E14.5bln, this leaves estimated net flows for this week at a positive E13.3bln (in line with last week’s positive E13.5bln ex BTP Italia retail).
For a calendar of all announced EGB/EU/ESM/EFSF auctions see the MNI EZ/UK Bond Supply Calendar here.
