Bunds: sedate, sideways trade as Portuguese bonds fly

A very tame start for the core Eurozone bond that has only ventured a handful of ticks either side of parity in early Eurex trade, and with turnover light at under 10k lots. The range so far has been 163.51-45 vs last Friday’s 163.47 close, as the corresponding 10 year German yield hugs the 0.3% level. However, plenty of action in non-core paper, in terms of relative performance if not trading volume as Portuguese bonds respond bullishly to the 2-notch Fitch upgrade and the 10 year yield declines 4 bp to sub-1.80% levels, below Italian BTPs that have more political issues to deal with. Looking ahead, a typically bare Monday agenda only has final EMU CPI scheduled from a top tier data perspective, and the major price indices are seen unchanged from the preliminary prints.

18 Dec 2017 - 07:43- - Source: ran

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