AUTOMOTIVE: Nissan (NSANY Ba1[N]/BB[N]/BB+[N]): Headlines

SX7E 155/150ps, bought for 0.30 in 20k.

Bund futures have narrowed the gap to initial support at 127.88, with no discernible headline trigger noted for the latest round of weakness. Impending Bobl supply alongside heavy corporate issuance will likely be weighing on EGBs this morning, alongside a recovery in European equity futures. Bunds are -32 ticks at 127.95 at typing.

• The German curve has bear steepened, with 2-year yields up 2.5bps and 30-year yields 4bps higher.
• The March German IFO survey provided a more positive outlook than yesterday’s PMIs, with the expectations component stronger-than-expected at 87.7 (vs 87.3 cons, 85.6 prior).
• The Bund-led nature of the selloff sees 10-year EGB spreads biased tighter. 10-year DSL supply was digested smoothly.
• ECB’s Kazimir and Muller did not deviate materially from past remarks, the latter adopting a hawkish tone around the case for future rate cuts.
• ECB’s Holzmann, Vujcic and Nagel are scheduled to speak later today. 

Gilts to fresh session lows as the data-driven weakness in Bunds applies fresh weight.

• An uptick in European equities (driven by hope of U.S. tariff reprieve, as well as some stock/sector specifics), higher oil prices and hawkish Fedspeak provided cross-market pressure at the open.
• Lows of 91.06 seen so far, with bears trying to force a clean break of initial support at the Mar 13 low (91.07). The bearish technical structure remains intact.
• Fresh extension lower would target the Mar 6 low and bear trigger (90.71).
• Yields 2-3bp higher across the curve, light steepening seen.
• On the supply front, the DMO will come to market with GBP2bln of the 4.75% Oct-43 line this morning.
• Little else of note on the domestic calendar until tomorrow’s CPI & Spring Statement.
• Expect our detailed previews of those events to cross throughout today.
• As noted earlier, the FT has pointed to over GBP5bln of spending cuts in tomorrow’s Statement given the erosion of the fiscal headroom outlined in the Autumn Budget, while the OBR is set to slash its ’25 GDP growth forecast to ~1%.
• GBP STIRs see modest hawkish repricing given the weakness in the long end, with 41bp of cuts priced through year-end vs. ~43bp late yesterday. SONA futures flat to -2.0.