EUR fixed income was very much driven by the Fed today, while ECB hike talk starts to bubble. Dutch PFs start to eye indexation, but UFR is an issue.
Today’s hawkish interpretation of the FOMC decision and Powell comments knocked BEs out of initial flight as the risk tone soured.
Across the euro grid 5y gamma underperformed, while vega posted gains. New structured issues brings another CDC callable and a SPIRE deal.
The euro long-end is steeper amid supply while ASW flows are mixed. Minutes from ESMA RFR WG meetings reveal mixed views on EURIBOR XCCY.
Euro issues pricing today include a new Finland 20y, EIB 7y and Land NRW tapping 2068s.
BEs largely tracked the broader risk tone once again intraday, but ended mostly in the black despite a still shaky risk backdrop.
Euro implieds were mixed today. Ahead, some expect 5y gamma to stay elevated.
A successful syndication of the OATei-53 occurred alongside unexpected strength in French inflation and the front end, according to dealers today.
The Bund and ASWs have retreated from yesterday's highs. Big supply arrives from the likes of France and KfW.
France is pricing a new 30y linker. Also pricing are CPPIB, KfW and Hitachi UK.