HALISTER1: Bunds Slip as Rates Markets Remain Choppy; Swap Spreads Tighten

Bunds Slip as Rates Markets Remain Choppy; Swap Spreads Tighten

(Bloomberg) -- Bunds dipped from the open, before accelerating with volumes surging as 10k trades in 1-minute between 161.40/28 as Monday’s low (161.35) is taken out. Swap spreads tighten up, with SDR showing numerous prints in 5y swaps, which may point to some short spread positions being entered ahead of ECB meeting.
  • Lots of focus on position before ECB decision, given the strong short bias from strategists with Barclays, Deutsche Bank, JPMorgan recommending short 10y bunds, while Citigroup and BNP are also bearish heading into the meeting
  • Bund futures lower by 39 ticks at 161.29; 5-10y sector underperforms on the curve, with swap spreads 0.5-1bps tighter across the sector
To contact the reporter on this story: Stephen Spratt in Hong Kong at sspratt3@bloomberg.net To contact the editors responsible for this story: Tan Hwee Ann at hatan@bloomberg.net Keith Jenkins

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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2539Z GR (European Central Bank)

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