European stock market close and Fixed Income round up 13 May 2016
European bonds
Italy 1.48% -3bp
Spain 1.60% -2bp
Portugal 3.16% -8bp
Germany 0.123% -3bp
Greece 7.42% +2bp
Fixed Income review courtesy of James Hirai at Livesquawk
"Bunds had an uneventful session with little data and or speakers and took the opportunity to consolidate ahead of the weekend. German Q1 GDP (small beat) and German CPI (in-line) released on the open failed to cap gains, as Bunds played catch up to UST gains in the Asian session. But resistance at 164.15 (the low shortly after the open on Thursday) held and Bunds subsequently ranged sideways, brushing off Eurozone Q1 GDP (small miss) before breaking sharply led by Bobls.
Bunds tried to regain lost ground, but a very strong US retail Sales figure (1.3% vs 0.8% cons) knocked them back down to new session lows and another rally was briefly capped by University of Michigan beat (95.8 vs 89.5 cons). However long end strength in core and periphs took Bunds to new session highs, breaking resistance at 164.15 in light volumes.
In peripherals, Spain underperformed, having traded well since the strong 50y syndication. The Spanish long end was hit further and the curve steepened after next Thursday's auction line was announced which included an unexpected 14y bond (dealers had expected only short end supply given the 50y deal earlier this week). Ireland outperformed ahead of possible ratings action by Moody's this evening."
