HALISTER1: Bunds Steady on Eve of ECB Decision; End-of-Day Curves, Spreads

Bunds Steady on Eve of ECB Decision; End-of-Day Curves, Spreads

(Bloomberg) -- German bunds flat into the close ahead of ECB decision Thursday, with 10y peripheral spreads tightening 2-3bps. Gilts drop after U.K. economy grew more than forecast in the third quarter, with waves of selling seen in Dec. 2017 short sterling.
  • Treasuries weaken after 10y yield breaches key 2.42% level, prompting heavy selling of futures
    • Bunds futures dipped after Ifo, which saw a large buyer of new upside step in
  • German 10y auction saw yields around day’s high, met with average demand, real bid/cover of 1.3x in line with prior and 0c tail
  • Strategists bearishly positioned for ECB meeting, with Barclays, Deutsche Bank and JPMorgan recommending short 10y bunds
  • Click here for a spreadsheet heat map of euro-area govt bond curves and spreads
To contact the reporter on this story: John Ainger in London at jainger@bloomberg.net To contact the editors responsible for this story: Ven Ram at vram1@bloomberg.net Keith Jenkins

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
2539Z GR (European Central Bank)

To de-activate this alert, click here
To modify this alert, click here

UUID: 7947283