RATINGS: Stable Outlooks Up For Review This Week
May-13 14:32
Potential sovereign rating reviews of note scheduled for after hours on Friday include:
- Fitch on Malta (current rating: A+; Outlook Stable) & Switzerland (current rating: AAA; Outlook Stable)
- Moody’s on Latvia (current rating: A3; Outlook Stable)
- DBRS Morningstar on the United Kingdom (current rating: AA (high), Stable Trend)
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MNI: BOC ISN'T ACTIVELY CONSIDERING BOND SALES AS PART OF QT
Apr-13 14:30
- MNI: BOC ISN'T ACTIVELY CONSIDERING BOND SALES AS PART OF QT
- BOC SAYS HALTING PRIMARY AND SECONDARY BOND PURCHASES UNDER QT
CANADA: BOC Econ Projections: Inflation Above Target Through Horizon
Apr-13 14:30
- Higher Inflation: Q4/Q4 figures revised up across the horizon, seen at 4.5% end-2022, two tenth upward revision to 2.4% end-2023 (broadly inline with analyst expectations) and in a new forecast, seen just above the inflation target at 2.1% end-2024.
- Mixed Growth: Revised down to 3.8% 4Q22 (broadly per market as strong start to year offset further out), up two tenths to 2.9% in 4Q23 (more optimistic than 2.6% consensus) and then slowing more materially to 1.7% come 4Q24.
BONDS: EGB/Gilt - Yield unwind
Apr-13 14:23
- EGBs and Bund have continued to bounce off the morning session low, and not even a US PPI beat changed the trend.
- Desk continued to square and take profit heading towards the end of the EU session, with the ECB in mind, and the long Bank Easter holiday weekend.
- Volumes remains quite poor, with RM likely on the sidelines.
- Peripheral spreads are mixed, Spain is 1.2bp wider, and Italy 2.5bps tighter
- .The trend in Gilts remains and underperforms Bund, a follow through post the morning UK CPI beat.
- But similarly, some locking profits, after the huge moves higher in yield we have had in Global Bonds.
- Gilt/Bunds spread sits 2.6bps wider.
- Looking ahead, most of the focus turns to the ECB tomorrow.
- Gilt futures are down -0.09 today at 119.40 with 10y yields up 0.7bp at 1.809% and 2y yields down -0.7bp at 1.492%.
- Bund futures are up 0.43 today at 155.79 with 10y Bund yields down -2.2bp at 0.766% and Schatz yields down -0.8bp at 0.061%.
- BTP futures are up 0.69 today at 134.78 with 10y yields down -4.2bp at 2.364% and 2y yields down -2.8bp at 0.422%.
- OAT futures are up 0.45 today at 147.97 with 10y yields down -3.0bp at 1.265% and 2y yields down -4.3bp at 0.092%.
