Recent structured deals include another big inflation-linked repack, a century tap and a choice selection of callables.
Traders attributed today’s steeper curve and bearish tone to thin summer markets and central bank buying rather than any correlation with stocks.
A bounce in oil prices from session lows helped to support the front of the euro inflation curve today. Ahead, banks mull linker issuance.
Second wave talk has taken Bund yields to 3-month lows. Meanwhile views on the curve are straightforward, some see it steepening, others flattening.
Summer trading is tightening its grip despite a hint of a dip in the top right. Traders reflect on EONIA to €STR discounting.
The Bund is under pressure and ASWs are tighter as long Treasuries sink. Bank strategists look at the Buxl. SocGen and HSBC report FICC and FVA.
Month-end proved to be a flow-driven random walk for BEs that ultimately saw them solidly in the black off the back of decent end-user demand.
Bunds are edging up with volumes supported by month end. Banks suggest hedges for a second Covid wave. BNPP and NatWest report FIC, VaR and hedges.
Dismal GDP data pressured BEs lower today with the back-end giving back yesterday’s FOMC-driven gains. Attention shift to month-end tomorrow.
European inflation felt the pressure from a macro-led rally in Bunds today and weaker than expected inflation data from Spain and Germany.