Weakness in equity markets failed to provide support to German Bunds, which given the uncertainty surrounding Greece ahead of the next week’s meeting are seen little changed. Financials led the move lower, with the 3-month Euro-Dollar cross currency basis swap at c.30bps below Euribor as tensions in the peripheral Eurozone lead to higher funding costs for banks. Firmer USD weighed on EUR/USD which trended lower throughout the session, however unwind of long EUR/GBP benefited GBP/USD, essentially flat at last check. In terms of EU related commentary, German finance minister spokesperson said that there is no threat of IMF pulling out of the Greek aid programme, adding that it remains unclear when the full Troika report on Greece will come. Going forward, markets will get to digest the latest Industrial Production and TIC flow reports.
16 Nov 2012 - 11:53 - - Source: RANsquawk
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