Another round of tightening for Bund swap spreads, shift is fairly parallel, although Buxl leads the move at the margin.

• Potential German fiscal issues and political unrest (covered earlier) the driver of the latest leg, with increasing free float behind the cyclical tightening move covered in detail in recent times.
• Bobl, Bund & Buxl (vs. 3-month Euribor) ASWs on for fresh cycle closing lows, Schatz (vs. 3-month Euribor) ASW ~1.5bp off last week’s cycle closing low.