9 Mar 2015
Bunds outperform other core bond markets as QE begins – TDS
FXStreet (Barcelona) - Tim Davis, Vice President, Global Strategist at TD Securities, summarizes the key developments in the EU market, noting that ECB has begun its bond purchases, with newswires reporting buying in bund, OAT, BTP and a number of other markets.
Key Quotes
“The European morning session has been dominated by two themes. First, the continued digestion of Friday’s strong employment report from the US, with USTs 1.5-2bp higher as some of Friday’s move is retraced.”
“Second, the ECB have begun buying bonds as part of their QE programme today with newswires reporting purchases in the bund, OAT and BTP markets and a number of other markets. This has led to bunds outperforming other core bond markets.”
“The European morning session has been rather devoid of top tier data and the North American session is pretty quiet too with just Canadian housing starts, the Fed’s LMCI index and Mexican CPI to look forward to.”
“There is another Eurogroup meeting on Greece today, so expect headlines from here, particularly after Greek FinMin Varaoufakis suggested that there could be early elections or a referendum if the Eurogroup continue to reject Syriza’s proposals.”
Key Quotes
“The European morning session has been dominated by two themes. First, the continued digestion of Friday’s strong employment report from the US, with USTs 1.5-2bp higher as some of Friday’s move is retraced.”
“Second, the ECB have begun buying bonds as part of their QE programme today with newswires reporting purchases in the bund, OAT and BTP markets and a number of other markets. This has led to bunds outperforming other core bond markets.”
“The European morning session has been rather devoid of top tier data and the North American session is pretty quiet too with just Canadian housing starts, the Fed’s LMCI index and Mexican CPI to look forward to.”
“There is another Eurogroup meeting on Greece today, so expect headlines from here, particularly after Greek FinMin Varaoufakis suggested that there could be early elections or a referendum if the Eurogroup continue to reject Syriza’s proposals.”