Swaps - EUR
A slightly twitchy Bund market last saw its benchmark yield skipping 3.4bps higher after the FOMC and BOE, amid a dearth of domestic drivers.
After a heavy day of issuance on Wednesday, sellers of euro bonds took a breather today, with honourable exceptions from a global spread of names.
Swappers discuss the widening in EONIA-BOR and 3s6s as some banks see more to come. Heavy new issuance in euros weighs on long-dated asset swaps.
The euro new deal pipeline continues to bulge with deals from across the spectrum of issuers.
Asset swap spreads proved resistant to a rush of new euro deals today while the Bund also shrugged off a recovery in risky assets.
Corporates join the list of euro new issuers today as Evergrande-driven volatility in risk assets subsides.
Contagion from China's shaky property sector sent European bank shares almost 5% lower before recovering, spurring Bund shorts to cover.
The start to the week includes covered bond issuers, Atlantic islands and NGEU's discussions with dealers before next week's first auction.
Sources say that supply and inflation is on the mind as the Bund came under further selling pressure today.
Swap spreads pushed wider despite a busy new issuance pipeline.