BOE: STR usage increases to record high following record ILTR usage
Jan-15 10:50
- STR usage increases GBP2.286bln to GBP99.300bln (a new record).
- This follows the net GBP1.892bln increase in ILTR usage on Tuesday that also settles today to a record GBP64.633bln.
- Overall this means that repo balances have increased GBP4.178bln to GBP163.933bln. This comes after recent weeks where repo usage had plateaued between GBP158-160bln from the end of November.
- There isn't an obvious reason for the increase in the usage of these operations so we will be watching the balance sheet updates closely over the next couple of weeks.
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MNI EXCLUSIVE: MNI Looks at the BOJ's Rate-Setting Calculations into 2026
Dec-16 10:49
- MNI looks at the BOJ's rate-setting calculations into 2026 -- On MNI Policy MainWire now, for more details please contact sales@marketnews.com
EGBS: Dec Flash PMIs Have Little Impact On EGBs, Focus On ECB and Issuance Plans
Dec-16 10:42
Slightly weaker-than-expected Eurozone December flash PMIs had little impact on core EGBs - the data doesn’t materially change expectations ahead of Thursday's ECB decision. Alongside the ECB, there remains interest in issuance plans from Germany and Italy on Thursday/Friday. German yields are up to 1bp lower across the curve, with the 5-year tenor modestly outperforming.
- 10-year Bund yields are ~2.85%, with the early December rise stalling ahead of the 2.90% figure.
- Bund futures are -4 ticks at 127.54, with a bear cycle still intact. Initial resistance remains at 128.08 (Dec 8 high).
- Note that the 10-year BTP/Bund spread is back above 70bp simply owing to a Bloomberg benchmark roll.
- The 10-year OAT/Bund spread remains above 70bps. The National Assembly is expected to submit final approval of the 2026 social security bill today, but primary uncertainty remains on state budget negotiations.
- In addition to yesterday's plans for the EU to issue E90bln of EU-bonds in H1-26, it has now noted that it expects "around" E160bln for 2026 as a whole (the same target as 2025 and same H1/H2 breakdown). 10-year EU-bonds outperform Bunds by around 1.5bps on the session (spread at 35bps).
- Today’s global calendar is headlined by the US labour market report.
EGB OPTIONS: Bund Put Spread
Dec-16 10:36
RXG6 126.50/124.50ps, bought for 27.5 in 6k.
