EU DEBT LATEST: supply issues/indigestion

Solid Spanish auction results did not set the tone for Eurozone semi-core and UK bond sales, but have underlined the relative attraction of Eurozone periphery paper and demand for premium despite ECB QE depressing yields most at the margins. French OATs were not greeted that well, like yesterday’s 10 year German Bund, but UK Gilts drew even less demand despite appealing to the investment portfolio needs of institutional buyers (normally). Hence, a downturn in Eurex debt futures and Liffe’s core 10 year contract to new session lows at 163.27 for Bunds, 157.28 for OATs and 124.24 for Gilts (-1/4 point, -23 ticks and -43 ticks vs +8, +8 and +10 ticks at the other end of the scale). US Treasuries also feeling some contagion having traded to fresh overnight highs earlier amidst a decent clip of 10 year note buying.

07 Dec 2017 - 10:51- - Source: ransquawk

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