AUCTION PREVIEW: Limited RV in 10Y Ireland, Value vs France
Source: BFW (Bloomberg First Word)
People
Marc-Henri Thoumin (Societe Generale SA)
Antoine Bouvet (Mizuho Financial Group Inc)
David Schnautz (Commerzbank AG)
To de-activate this alert, click here
UUID: 7947283
(Bloomberg) -- Ireland to tap 1% 05/2026 bonds for EU750m at 11am CET; analysts see recent underperformance vs France, reduced size as supportive, despite lack of curve concession.
Alert: HALISTER1- SocGen (Marc-Henri Thoumin)
- 10Y bond stable ahead of supply, experiencing no pre- auction discount; still cheaper vs short-dated bonds as a result of unstable risk sentiment, may flatten if sentiment improves
- Cross-market has underperformed 10Y OATs recently, while 5Y has been more resilient, expect this to converge post-auction; Ireland fundamentals seen as supportive
- Commerzbank (David Schnautz)
- Decision to auction 10Y instead of 30Y, reduced size, should prove supportive
- Recent 10Y underperformance vs France, Italy argues for smooth sale today
- Only one more auction in 2Q bodes well for solid post- supply recovery, before EU referendum becomes main driver of Irish spreads
- Mizuho (Antoine Bouvet)
- Bond trades expensive on the Irish fitted curve, has performed well recently in RV; Irish spread to France has suffered since the beginning of the month, back at wide spreads seen in Feb.
Source: BFW (Bloomberg First Word)
People
Marc-Henri Thoumin (Societe Generale SA)
Antoine Bouvet (Mizuho Financial Group Inc)
David Schnautz (Commerzbank AG)
To de-activate this alert, click here
UUID: 7947283