Halister News

(Bloomberg) -- Recent sell-off after last week’s ECB decision has spurred investors to add positions in some peripherals, though expect some to remain in wait-and-see mode before FOMC next week, BBVA strategist Jaime Costero writes in a client note.

• Activity has been pretty high in SPGBs this week and has been mainly supported by non-European banks, largely from Asia, buying in the very front end
  • European banks have been buying in the 1Y-5Y sector, with local banks and ALMs buying across the curve
  • In addition, there has been some hedge fund selling in the front end and in 10Y areas, with domestic insurance demand seen in the long-end
• NOTE: Spain 10Y bonds have outperformed BTPs by ~15bps over past 6 sessions; front end has outperformed sharply, with 5s30s curve steeper by ~18bps over the same period