Swaps - BASIS SWAPS
London temperatures are hitting 90 degrees Fahrenheit, enough to make the average Brit yearn for Autumn. SONIA though, is heating up even faster.
Much like in Watergate, the basis market is being driven by plumbers, trying to find the right way to get the pipes gushing. GBP and EUR benefit.
Treasury yields are backing up from Friday's post-NFP lows. Elsewhere, as the fix falls again, banks ask whether LIBOR-OIS can go any tighter.
As a rush of euro new deals hit the screens, swappers keep an eye out for the impact of NGEU supply expected this week.
Cracks are appearing in the Corona money wall. Central bankers in Australia and the US repo market both point to a possible peak in basis's surge.
Strong ADP data was largely shrugged off with USTs little-changed and stock futures weaker. Elsewhere, banks look at the latest GSIB scores.
Nestle's four-part euro issuance dominates today's activity.
Basis swappers await with bated breath to see if the rest of the week returns to full functionality. Canadians are helping. More glut talk...
Canadian and Australian names are among the issuers working on euro deals.
The winner of the latest cross-currency basis swap market Word of the Week competition is 'glut.' Elsewhere, was AstraZeneca busy in €STR-SONIA?