Today’s $15bn Jan31 TIPS auction was but a little molehill for bullish inflationistas who continued to chase BEs higher this session.
Euro inflation swaps were off session lows but remained softer across the board into the close following 10y supply from the AFT.
With the ECB meeting stopping traffic and the SURE supply lurking, USD seized the opportunity to corner most of the cross-border market today.
The continued tightening in euro basis was front of mind for one trader today, despite low volatility in the market ahead of the ECB meeting.
A shorter list of euro deals ahead of the ECB today still includes a GS benchmark and a 30y from Land NRW.
BEs extended on the reflation rally of 2021 as the presidential baton was passed amid a buoyant risk-tone. Attention shifts to the 10y TIPS auction.
Vols move lower, while some traders are intrigued by ongoing bids for 2y10y OTM receivers.
Speaking ahead of tomorrow’s new 10y OAT€i, inflation traders note more interest in swaps than bonds
The euro curve is steeper amid more speculation about upcoming EU SURE issuance.
More long-end deals are pricing, plus EIB returns to the €STR-linked market.