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11 Dec 2014
Bunds struck fresh lows yesterday – DB
FXStreet (Barcelona) - The Deutsche Bank Research Team notes that the sentiment in Europe was impacted by moves in Oil, with 10y Bunds striking fresh lows at 0.681% yesterday.
Key Quotes
“The sentiment in Europe was also impacted by the moves in Oil but data wasn't exactly supportive either. The Stoxx 600 pared earlier gains of as much as +0.9% to close -0.34% at the end of play. Similar declines were felt for energy names, with the component declining 1.93%.”
“In terms of data, French industrial production came in particularly soft at -0.8% mom (vs. +0.2% expected), whilst manufacturing production didn’t fare much better – the -0.2% mom reading below market consensus. The prints perhaps underlined reasons over a new proposal from the French government yesterday aimed at kick starting growth in the economy and putting together the reforms needed to avoid EU sanctions. According to the WSJ, the package includes measures to increase shop opening hours, measures around resolving disputes over employment firings, deregulating legal trade and cutting red tape for construction. Benchmark 10y yields in France yesterday closed 0.5bps tighter at 0.961%.”
“Elsewhere, 10y Bunds struck fresh lows at 0.681% yesterday, although it traded as low as 0.672% intraday as peripheral assets underperformed, headlined by further price moves in Greece. 10y benchmark yields in Greece widened a further 35bps whilst 3y yields closed 104bps wider at 9.122%. Greece’s 1y CDS was the notable price-mover however, widening over 700bps to 1536bps on the day.”
Key Quotes
“The sentiment in Europe was also impacted by the moves in Oil but data wasn't exactly supportive either. The Stoxx 600 pared earlier gains of as much as +0.9% to close -0.34% at the end of play. Similar declines were felt for energy names, with the component declining 1.93%.”
“In terms of data, French industrial production came in particularly soft at -0.8% mom (vs. +0.2% expected), whilst manufacturing production didn’t fare much better – the -0.2% mom reading below market consensus. The prints perhaps underlined reasons over a new proposal from the French government yesterday aimed at kick starting growth in the economy and putting together the reforms needed to avoid EU sanctions. According to the WSJ, the package includes measures to increase shop opening hours, measures around resolving disputes over employment firings, deregulating legal trade and cutting red tape for construction. Benchmark 10y yields in France yesterday closed 0.5bps tighter at 0.961%.”
“Elsewhere, 10y Bunds struck fresh lows at 0.681% yesterday, although it traded as low as 0.672% intraday as peripheral assets underperformed, headlined by further price moves in Greece. 10y benchmark yields in Greece widened a further 35bps whilst 3y yields closed 104bps wider at 9.122%. Greece’s 1y CDS was the notable price-mover however, widening over 700bps to 1536bps on the day.”