BOE: STR usage increases GBP1.844bln; total repo usage at record GBP130.8bln
Oct-23 09:44
- STR usage GBP1.844bln increase from last week at GBP83.681bln, the second highest on record behind the GBP87.149bln seen on 25 September.
- ILTR usage picked up a net GBP3.189bln on Tuesday to a record high of GBP47.163bln.
- This puts overall repo operation usage at GBP130.844bln - and increase of GBP5.033bln from the previous record high of last week.
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EGBS: Bunds Within Technical Boundaries With Data and Supply Digested
Sep-23 09:39
- Bund futures are -1 tick at 128.235, towards the middle/lower end of their session range as markets digest this morning’s September flash PMIs, sovereign supply and an uptick in equity/oil futures.
- Bunds saw some contained two-way swings around the German & French PMIs (political uncertainty and soft prices biased the French readings lower, while German readings were mixed, with output prices on the firmer side). The Eurozone-wide composite PMI was very slightly above consensus at 51.2 (vs 51.1 cons, 51.0 prior).
- Initial technical areas of interest in Bunds remain intact: Support around 128.01 (Sep 23 low) and 128.04, resistance at the 20-day EMA of 128.60.
- The German curve is lightly twist flatter (2-year yields up 0.5bps, 30-year yields down 1bp), with Schatz supply weighing into the 1030BST bidding deadline. The Schatz results were acceptable, albeit with slightly softer cover ratios than the previous outing.
- 30-year DDA books closed in excess of E32bln. Portugal is also holding a syndication today.
- 10-Year EGB spreads to Bunds are little changed to ~1bp tighter. No real signs of weakness for DSLs & PGBs around the ongoing syndication processes, with 10-Year PGBs actually outperforming on the day.
- ECB’s Kocher and Cipollone are scheduled to speak later today.
OUTLOOK: Price Signal Summary - S&P E-Minis Trend Needle Still Points North
Sep-23 09:37
- In the equity space, a bull cycle in S&P E-Minis remains intact and the contract traded to a fresh cycle high yesterday. Price has breached the 6700.00 handle and this signals scope for an extension towards 6787.63, a 1.382 projection of the Aug 1 - 15 - 20 price swing. Moving average studies remain in a bull-mode position, highlighting a dominant uptrend and positive market sentiment. Initial support to watch lies at 6616.34, the 20-day EMA.
- EUROSTOXX 50 futures are trading closer to their recent highs. The contract recently traded through resistance around the 20-day EMA - a bullish development - and the subsequent rally reinforces a bullish theme. The move signals potential for a climb towards 5525.00, the Aug 22 high and a bull trigger. On the downside, key support has been defined at 5302.00, the Sep 2 low. First support lies at 5409.70, the 20-day EMA.
GERMAN AUCTION RESULTS: 1.90% Sep-27 Schatz
Sep-23 09:33
| 1.90% Sep-27 Schatz | Previous | |
| ISIN | DE000BU22106 | |
| Total sold | E4.5bln | E4.5bln |
| Allotted | E3.601bln | E3.552bln |
| Avg yield | 2.01% | 1.96% |
| Bid-to-offer | 1.45x | 1.60x |
| Bid-to-cover | 1.82x | 2.03x |
| Avg Price | 99.775 | 99.867 |
| Low Price | 99.775 | 99.865 |
| Pre-auction mid | 99.764 | 99.862 |
| Previous date | 02-Sep-25 |
