BEs quickly sulk lower into the month-end close as a meager index extension, rallying nominals and a rudderless risk tone lent little support.
As coronavirus infection indicators start to dip, so does vol. Traders describe the flows as the vol market descends from Mount Fear.
Extensions and risk off helped the euro curve bull-flatten out to 10y. Banks look at the likely impact of the proposed EU Recovery Fund.
BEs ignored the shifting risk tone today, forging higher as the backdrop deteriorated. Attention now shift to month-end flows tomorrow.
German CPI data and the morning’s re-pricing by the market of May Eurozone HICP by 10bps have combined to give inflation a much-needed boost
After a quiet start to the week, both sides of the Atlantic are seeing strong issuance, with USD supply from non-domestic issuers booming.
Bund asset swaps were a talking point in lunchtime trading as news of grants and loans from the EU’s ERF continue to keep spreads tight.
Yesterday's fast pace of EUR bond issuance continued today with new offerings emerging from BASF, Credit Agricole, Axa and Bpi, among others.
BEs were guided higher by macro backdrop today when compared to late day levels yesterday, though volumes and conviction remained low, sources report.
Fast money have pounced on a steep expiry curve. Vega puzzles some.