European stock market close and fixed income recap 17 May 2016
- FTSE +0.3%
- Cac -0.3%
- Dax -0.6%
- Ibex +0.2%
- FTSE Mib -1.3%
European bonds
- Italy 1.45% -3bp
- Spain 1.56% -4bp
- Portugal 3.07% -7bp
- Germany 0.128% -1bp
- Greece 7.37% -3bp
European Fixed Income Recap courtesy of James Hirai at Livesquawk
After some initial weakness following an early risk on tone, Bunds recovered to grind higher throughout the session. Support was two-fold, firstly UK CPI data missed consensus, resulting in Gilt outperformance which dragged the rest of Fixed Income higher and secondly, there was a large corporate supply pipeline of mostly swapped issuance, which supported the curve into the pricings in the afternoon.
US CPI data was in line to a small beat, but this provided only small respite as Bunds quickly resumed their march higher. There were a couple of ECB speakers, Costa, who didn't cover Monetary policy and Visco who said he saw concrete deflation risks in the Eurozone. However, Bunds were already trading towards session highs by the time the latter's comments hit the wires. In peripheral space, curves bull flattened, aided by international accounts buying the long end
