Swaps - EUR
Very aggressive long-end receiving smashes the curve and dealers warn of more to come. In research, Commerz says forced receiving is back.
The 2025 SPGB sale today was small but nonetheless did nothing to undermine the rise of the non-core EGB market. Swappers discuss low-for-long.
Utility companies and covered bond issuers led a mixed pack of borrowers in EUR today.
Bund ASWs remain under pressure but some traders are wary about fading the move. Citi expects 30s/50s to keep flattening given regulations.
Talk of pension funds playing it safe and shifting exposure from 20y to 30y ahead of possible LLP changes. Commerz looks at the German LCR exodus.
Fintech Wematch has matched its first EUREX/LCH basis trade, between Societe Generale and LBBW.
Long-dated ASWs are tighter as markets eye reverse yankee issuance and more pension fund receiving. HSBC examines DNB and Solvency II reforms.
The curve is lower and a tad flatter as the Bund underperforms into the long US weekend. Barclays examines the depth and vol of the Euribor fixings.
JP Morgan announced an 8y NC7 today while Dow Chemical's multi-tranche deal is on the slate for next week.
Dire warnings of the risks of corona-contagion on the London underground and the sudden resignation of the Chancellor were the drivers today.