HUF: EUR/HUF Vol Skew Showing at Multi-Year Lows Following Jan CPI
Feb-12 09:06
Yesterday's stronger-than-expected inflation data - led by surging food and services prices - contin...
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CROSS ASSET: Equities are extending losses
Jan-13 09:01
- Not much in term of spillovers into FX for now, with Tnotes hovering at session low, and in turn the US 10yr Yield getting closer to the 4.80% level, so far printed a 4.7964% high.
- The EUR and the Pound have pared some of their earlier losses, but all in small.
- The Pound is still the worst performer, now down 0.53%, and the Yen is still holding onto a tiny 0.11% gain.
- Market Participants will be fully focused on the UK/US CPIs as well as the US Earnings.
- Equities are still falling, close to 100 points for the Estoxx futures (VGH5) since the US NFP.
- The Emini sees the next support area at 5787.5 (Nov Low), and 5776.00 (Oct low).
EGBS: /SWAPS: Commerzbank Maintain Short Recommendation In Long End ASWs
Jan-13 08:51
German ASWs stabilise this morning, despite fresh weakness in core global FI markets
- However, Commerzbank warn that “fiscal fears still linger as the underlying political frictions are very difficult to resolve. At the same time, DMOs think in terms of absolute yields and need ultra-long issuance for their funding mix. Hence, ultra-long issuance run-rates should remain on record highs.”
- They also suggest that “a 'white knight' in the form of increased ALM buying is also unlikely to emerge.” As a result, they “don’t see a quick fix and remain short long-end Bunds ASW and OATs.”
BUNDS: German 10yr Yield Targets the July high
Jan-13 08:45
- The German 10yr got close to that July high, noted at 2.642%, so far printed a 2.634%.
- This level is slightly lower Today, was at 130.56 on Friday, but at 130.50 Today.
- Further out, and a clear break through that area would open risk towards the 2024 high printed in June at 2.706%.
- 2.706% = 129.83 today.
