HALISTER1: Expect Bullish Bias in EU Bond Markets, Curve Flattening: BNP

Expect Bullish Bias in EU Bond Markets, Curve Flattening: BNP

(Bloomberg) -- Expect a bullish bias and flattening pressure on curves in the coming weeks, as end-of-month period and supply dynamics will be favorable for a rebound in bond markets, BNP strategists including Patrick Jacq write in a client note.
  • Month-end duration extension can fuel portfolio adjustments
  • Prospect of negative net supply in October of about -EU75b will also probably lead to lower bond yields
  • Front end of EUR curve is in a tight range, with little prospect of ECB decisions in the coming weeks to fuel curve re-steepening
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Patrick Jacq (BNP Paribas SA)

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