BUNDS: Little Net Reaction To Constitutional Court Ruling On Debt Brake Reform
Mar-14 15:35
There was little net reaction in Bund futures after the German constitutional court rejected opposition attempts to block the existing Bundestag from implementing debt brake reforms.
- That helps Bunds consolidate the recovery from earlier lows of 126.64, which came after the Greens, CDU/CSU and SPD reached an agreement on incoming Chancellor Merz’s proposed fiscal expansion measures.
- Initial support in Bunds remains at Tuesday’s low of 126.53, with a bearish technical theme still in tact.
- It was generally expected that the Greens/CDU/CSU/SPD would reach an agreement on fiscal reform by the end of this week, while the constitutional court decision was considered to be a risk factor ahead of the plenary debate/vote on March 18. The base case was that the AfD/Linke motions would be rejected.
- The German curve continues to trade steeper today though, with yields +1.5bps to +3.5bps higher across the curve. Meanwhile, Bund ASW (vs. 3-month Euribor) has more than unwound earlier tightening to trade +0.8bps on the session.
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GILT AUCTION PREVIEW: On offer next week
Feb-12 15:33
The DMO has announced it will be looking to sell GBP4.25bln of the 4.375% Mar-28 Gilt (ISIN: GB00BSQNRC93) at its auction next Wednesday, February 19.
USD: Greenback Bid Fades Further As Hassett Points To Discussions On Tariffs
Feb-12 15:32
USD unwinds some more of the CPI-driven bid as comments from Trump economic advisor Hassett signal the potential for offramps surrounding reciprocal tariffs (examples of potential outcomes include exemptions for some countries, delays in implementation or at least negotiations surrounding the matter).
- For completeness, Hassett noted that “reciprocal tariffs are a work in progress, with conversations with other countries starting earlier today.
MNI: US EIA: CRUDE OIL STOCKS EX SPR +4.07M TO 427.9M FEB 07 WK
Feb-12 15:30
- US EIA: CRUDE OIL STOCKS EX SPR +4.07M TO 427.9M FEB 07 WK
- US EIA: DISTILLATE STOCKS +0.14M TO 118.6M IN FEB 07 WK
- US EIA: GASOLINE STOCKS -3.04M TO 248.1M IN FEB 07 WK
- US EIA: CUSHING STOCKS +0.87M TO 21.8M BARRELS IN FEB 07 WK
- US EIA: SPR +0.25M TO 395.3M BARRELS IN FEB 07 WK
- US EIA: REFINERY UTILIZATION WEEK CHANGE +0.5% TO 85.0% IN FEB 07 WK
