BEs nudged a little higher with a strong PPI providing a green light against an inflation-friendly/neutral backdrop. CPI is now on the horizon.
Holidays led to a reduced list of MTNs over the week. Still, EBRD issued short callables, Intesa Sanpaolo printed a CMS and GS launched a hybrid.
Bunds are down with USTs today but BTPs are weakest amid reports of new borrowing. Elsewhere, banks discuss the ECB's appetite for buying bonds.
Names on the screens at the end of the week include REN, Berlin Hyp, Ile-de-France and RfPs from the EU and the EFSF.
Today’s Fed TIPS purchase helped support front-end BEs but the bull flattening nominal rally weighed on longer tenors.
Traders described Euro inflation as “pretty stable” going into the close with the market lacking any particular trend or momentum.
Traders said the Eikon outage hit flows but spotted flattening in 2s/10s while cash spreads came under pressure.
EUR new issuance remains quieter for the Easter holidays but continues to tick over, aided by activity from regional governments and supras.
BEs snapped back higher today after yesterday’s flow-driven hiccup. Inflationistas eye tomorrow’s Fed TIPS purchase operation.
The top and mid-left of the grid were active.