Forex - Eurozone Bond Flows: New Dutch 10y DSL 0.75% 07/28 priced at +16.5bp over 10y Bunds

 12:08 (GMT) 13 Mar

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The Dutch State Treasury Agency sold today EUR 5.85bn of the new 10y DSL 0.75% 07/28. The bond was issued through the Dutch Direct Auction System at a price of 99.60, implying a yield of 0.791% which corresponds to a spread over the Bund 05% 02/28 of +16.5bp which is at the bottom of the revised spread guidance of +16.5-17.5bp where we see the bond as fairly valued relative to both the Dutch and German curves. Demand for the bond totalled up to EUR 18.9bn by the closing of the books.

Forex - UK Bond Flows: gilts edge touch firmer ahead of Spring Statement

 09:38 (GMT) 13 Mar

Gilts leaning a touch firmer this morning ahead of the Spring Statement but still very much within the recent very narrow range and not much adrift from bunds. The Statement itself is set to be light of any new measures by design (getting away from what had become a habit of essentially 2 Budgets a year) but is expected to confirm improvements in public finances. The OBR has already said that this year is looking significantly below deficit projection, seen now more like GBP43bn vs the near GBP50bn back in Nov. 2018/9 figures are also expected to be trimmed as well to reflect the momentum, a poll of dealers centre on a PSNB of GBP33.3bn from 39.5bn at the Nov OBR forecast and see bond issuance dropping to GBP100.7bn vs 115bn prior remit. 121.43~ recent high on the future today's best so far, a look above there has .64 to then 122~. Break above the latter needed to be getting anywhere. Ultimately, overall direction more likely to come from any notable US CPI surprises today, though gilts can perhaps try better if the US numbers prove bland.

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