Long AUD curve spreads traded overnight after recent steepening triggered curve trade ideas.
The top left of the sterling vol grid is sold, 1m remains well supported, while vega bids confound traders.
As the fizz from Friday’s pop in optimism regarding a possible Brexit agreement goes flat, gilt yields today sheepishly tiptoed lower again.
Bund swap spreads fail to re-widen despite the risk-off backdrop. DB looks at ALM and negative convexity.
ZF Europe Finance is working on a four-part EUR benchmark deal. Also pricing are ADB, Credit Agricole, LBP Home Loan and UBI Banca.
There has been trade in AUD curve spreads and forwards as the market looks ahead to key employment data later this week.
Amid another solid trade-news driven risk-on move, BEs snapped higher, rallying an additional 3.5-5.5bps amid decent interest in the asset class.
Euro-denominated MTNs emerging over the last week or so included re-packs, a lone CMS structure, and some long vanilla.
USTs have taken another sharp leg down on trade optimism. Fed announces T-Bill buyback program. BAML looks as FHLB LIBOR phase out.
Traders were as stressed as the brains behind the LibDem ‘Remain’ strategy today as fears/hopes/expectations of a Brexit breakthrough went stellar.
Traders reported a pretty flat day in EUR vol despite Brexit deal hopes, with one trader explaining that “we’re all watching the underlying.”
China and the US combined are much, much more important than the EU and UK in economic terms, but traders, said minds are fixed on Brexit.
JP Morgan's co-head of EMEA rates, Tom Prickett, discusses recent developments in €STR trading and the prospects for the nascent benchmark.
Carnival, the world’s largest leisure travel company, has mandated BAML, BNPP, Citi, GS and NatWest for a EUR 10y.
JPY Swaps: Mid-sector spreads in; 5-10y bid
AUD Swaps: 3-10y bid after ECB; 5y EFP out
Asia Pacific MTNs: Zeros; JPY Perpetuals; Equity-linked Uridashis
Treasuries are grinding back toward the lows of the day into the close and sources see the price action more slippery with levels faltering easily.
September CPI fell short of consensus expectations. However, the NSA was stronger than the market was pricing in the screens which helped buoy BEs.
Implieds are higher in the upper right, but risks of a risk-on reversal have some wondering if gamma could abruptly correct lower. Vega drops.