2020 means a new decade, and signs too of a new normal for a basis swap market that has been weird for most of the 21st Century. Traders eye SONIA.
The EFSF discusses its recently priced €3bn 30y and what motivated investors.
Issuance across the board remain strong but basis flows seem to have stepped back a touch as a bunch of significant pricings are awaited.
Traders describe a fierce move in LCH/EUREX and speculated about the drivers
EFSF prices €3bn 30y; Sovereigns target 20y; EIB plans its second €STR-linked bond
He’s a lumberjack and he’s not OK. That’s right, news that the Duke and the Duchess of Sussex are heading off to Canada has gilt bears in a tizzy.
Optimism is a rare commodity in this troubled world, but the basis swaps market is positively abounding in it as new issuance has hit new year highs.
The traditional busy January start to the new issuance markets has seen the GBP market emerge as the big out-performer of historical norms.
Today is expected to be one of the busiest days of the entire year for new issuance, with over a dozen names pricing across the 5y to 15y sector.
A low-volume market repricing pre-year-end has seen government bond yields soar across the world, while X-currency basis swaps hit all-time highs.