BONDS: TY & Gilt Futures Pierce Yesterday's Lows
Jan-23 09:29
Some weakness evident in core global FI markets, with TY, Bund & gilt futures at fresh session lows. TY and gilt futures have pierced yesterday’s lows during the move.
- A couple of factors seemingly at play here:
- An uptick in oil and EUR natural gas prices.
- Setup for French supply.
- EGB spreads to Bunds generally wider, driven by the presence French supply and a downtick in equities, BTPs & OATs widen by ~2bp at the 10-Year point.
- French fiscal headlines (covered earlier) another potential spread widening catalyst.
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CROSS ASSET: MONTH END EXTENSION (update)
Dec-24 08:21
This should be a non event for Year End, they are small, and only the lower liquidity could get Govies moving, but unlikely, as investors turn their attention to 2025.
Bloomberg Bonds:
- US Tsys: +0.07yr (small, average).
- EU Govies: +0.04yr (small).
- UK Govies: -0.02yr (non event).
MS Bonds:
- US Tsys: +0.05yr (small).
- EU Govies: +0.03yr (small).
- UK Govies: To contract (non event).
Barclays FX:
- Their Quarter rebalancing model only shows a Weak Dollar Buying signal.
GILTS: Opens within the Calls
Dec-24 08:09
- A slightly higher open for Gilt, was just down 2 ticks at 92.46 vs close, a small wide range of 16 ticks on the Open, but as expected very poor volumes as also seen in the Sonia Strip.
- In Terms of Technical, support is at 91.87, while resistance moves down to 92.92.
GILTS: Opening calls
Dec-24 07:57
Gilt Calls will be taken from Tnotes, with Europe closed, 92.40, would be 8 ticks down.
