AUCTION PREVIEW: Redemption Flows Seen Helping German 5-Yr Sale
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
Tickers
UCG IM (UniCredit SpA)
People
Kornelius Purps (UniCredit SpA)
Aditya Chordia (JPMorgan Chase & Co)
Gianluca Salford (JPMorgan Chase & Co)
Peter Chatwell (Mizuho Financial Group Inc)
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UUID: 7947283
(Bloomberg) -- Germany plans to sell EU4b in 5-year Bobl in reopening of April 2022 series.
- UniCredit (Strategists including Kornelius Purps)
- Recent strong demand for short-dated German bonds, EUR14b of redemptions should lend additional support to auction
- Belly of the curve has been underperforming since the end of February, particularly in the bund universe; 2-5-10Y bund fly rose by 5.5bps; respective fly increased by 4.1bps on EUR swap curve
- Mizuho (Peter Chatwell)
- Series has shown signs of heating up in repo suggesting a more meaningful short base among dealers
- This, as well as richening of 5-year sector on German curve, are positive signs for the auction
- JPMorgan (Gianluca Salford, Aditya Chordia)
- 5-year benchmark is trading with a benchmark discount of around 1.2bp, broadly in the middle of last two years’ range
- Bond is trading slightly on the cheap side on curve in a 50:50 level-adjusted 2s/5s/10s regression
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
Tickers
UCG IM (UniCredit SpA)
People
Kornelius Purps (UniCredit SpA)
Aditya Chordia (JPMorgan Chase & Co)
Gianluca Salford (JPMorgan Chase & Co)
Peter Chatwell (Mizuho Financial Group Inc)
To de-activate this alert, click here
To modify this alert, click here
UUID: 7947283