Bunds: tentative bid post-Fed and pre-ECB

No technical issues holding up Eurex trade today, but a rather tame open for the 10 year German benchmark that has meandered in a 163.26-37 range around Wednesday’s 163.27 close. No surprises from the FOMC after another ‘dovish hike’, as the 2018 dot plots continue to signal 3 hikes and outgoing Fed chair Yellen also reiterated that further tightening will be gradual. Hence, attention shifts to the ECB and updated Staff Forecasts that are widely expected to reflect the more upbeat assessment and outlook delivered by President Draghi at the previous (October) meeting when the scale of QE downsizing was announced. On that note, market participants will be looking for any further guidance and details of potential composition changes when the bond buying pace slows to Eur30 bn from next month.   

14 Dec 2017 - 07:36- - Source: ransquawk

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