EU Fixed – going through the motions

It’s reverted to a typically turgid Monday session after the early advance in 10 year bonds fizzled out, but EZ periphery paper continues to shrug off, or at least overlook political issues that could yet come back to haunt. Supply from Belgium has been relatively well received as debt markets look ahead to Thursday’s ECB gathering with much anticipation. UK Gilts still underperforming on 2 fronts – Brexit uncertainty and BoE hike prospects – amidst reports that PM May pleaded with EU’s Juncker for assistance and could be open to compromise on the divorce bill, if changes in the terms are constructive. Note, 3 month Sterling Libor fixed quite a bit higher today (up almost 1 bp), despite a weaker than forecast CBI trends survey. Back to Liffe, reports of some blocked activity earlier (1k sold at 124.21, below the current quoted base), while on Eurex some bearish positioning via options with the Nov 161.50/160.50 1:2 Bund put spread bought for 17-17.5 ticks in 5k lots.   

23 Oct 2017 - 12:24- - Source: ransquawk

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