SPAIN AUCTION RESULTS: Bono/Obli Results

Expect FX exchange traded roll to pick up this Week, should be all done by Friday ahead of the Expiry next Monday (17th March).

ROLL PACE:

• EUR: 24%.
• GBP: 26%.
• JPY: 35% (above pace).
• CHF: 22%.
• CAD: 15% (below pace).
• AUD: 22%.
• NZD: 27% (above pace).
• SEK: 38% (above pace).
• NOK: 27%.

ERH5 97.75/97.62/97.50/97.37p condor, sold at 11 in 10k (said to be profit taking).

Weakness in bonds, driven by renewed hope for a fiscal deal by the end of the week following the previously covered comments from the Greens, weighs on ASWs.

• Spreads vs. 3-month Euribor 0.3-1.2bp lower, with the long end under the most pressure after underperforming yesterday.
• Spreads remain relatively close to, albeit above, cycle/all-time lows.
• The speed of delivery (expected to be skewed into H225) and maturity mix of any fiscal loosening-driven issuance are set to shape the outlook for ASWs over a multi-month horizon.
• A reminder that positioning in the long end of the ASW spread curve continues to feel short, which means that any further spread narrowing is unlikely to come in a straight line.