Good morning,
Slow start to the day. I won't be forcing it with so much going on this week. U.S. 10s bouncing off of 126.215 support. Not sure if it has the legs for much of a rally.
Bunds Could be rolling over..or..Could be entering into some sideways boredom pre ECB. I think the focus might be more on the shortend this week.
€ curve, Standout from last week was the impressive bobl rally. Based on the increased likelyhood of a rate cut coming soon I expect the rest of the curve trades to steepen. Maybe not quite as aggressive as bobl/bund tho. Could be some value in buying Schatz/bobl spread here into ECB this week.
€ teds, Impressive LTRO repapyment number friday may have taking some of the Bor bid out of the market. Nevertheless the Bor continues to outperform the bonds to the upside.
Euro Manufacturing PMI and Sentix investor confidence out today.
Have fun
Lee
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