Other traders cited canada goose clearance talk of European
Bunds hold steady as focus shifts to Fed
LONDON, Sep 20 (Reuters) Bunds held steady on Tuesday, with the impact of an Italian ratings cut fading and investors cheap canada Canada Goose Outlet goose uk reluctant to add canada goose store significantly to their German debt holdings before the Federal Reserve decides how far it is willing to loosen monetary policy.
The Fed, beginning a two day meeting later on Tuesday, is poised to increase downward pressure on longer term interest rates by extending the maturity of its Treasury assets. Any bolder move may take fixed income markets by surprise and hit Bunds.
Fears about Greece ability to secure its next international aid tranche remained, however, and funding strains in euro interbank markets intensified, keeping Canada Goose Jackets a bias in the market for further near term gains buy canada goose jacket for Bunds.
German 10 year yields were last 0.4 Canada Goose sale basis points canada goose black friday sale lower at 1.801 percent, having earlier fallen canada goose uk black friday as low as 1.734 Canada Goose Online percent, just above record lows at 1.681 percent.
of the Fed you probably don want to run these large positions testing all time lows for Bunds. there may always be a surprise, said cheap Canada Goose WestLB rate strategist Michael Leister.
Italy 10 year bond yield spread canada goose over Bunds canada goose uk outlet briefly reached 397 bps in the session, before falling back to 389 bps, up uk canada goose outlet about 10 bps on day.
One trader said https://www.canadagooseoutleta.com the spread narrowing from session wides was caused by a few small bids for Italian paper in thin trade. Other traders cited canada goose clearance talk of European Central Bank buying Italian and Spanish debt, although they had not seen the flows.
Standard Poor cut Italy to A from A+, preceding any move by Moody which was expected to be the first major credit ratings agency to downgrade the country. S now rates the country three notches lower than Moody and two notches lower than Fitch.
is. a reminder that there will be pressure on the ratings of some other canada goose uk shop countries, said Rainer Guntermann, strategist at Commerzbank.
Italian 5 year credit default swaps rose 27 bps to 515 bps, according to monitor Markit. The cost to insure the Canada Goose Outlet country debt against default has risen rapidly in recent weeks, while cash bond yields have been kept relatively contained by ECB purchases.
CDS level) shows that the market is increasing pressure on the ECB, said WestLB Leister. are always break ups between market segments canadian goose jacket but at the end of the day things converge simply because of economic reasons.
would expect that buy canada goose jacket cheap pressure on Italian bonds should also increase markedly. The ECB will probably Canada Goose online have busier weeks ahead in uk canada goose terms of buying Italian and Spanish bonds.
Bund futures FGBLc1 last traded four ticks lower on the day at 137.39, having risen Canada Goose Parka as high as 138.14. Reports that Bank of China had stopped foreign exchange canada goose factory sale forwards and swaps trading with three top French banks supported Bunds in early trade.
DOUBTS OVER GREECE Greece, in a telephone call with senior officials of the European Union canada goose clearance sale and the International Monetary Fund on Monday, promised as many austerity moves as necessary to secure canada goose coats on sale its next aid tranche but the lenders warned implementation was key.
Talks with the lenders resume later on Tuesday. Traders said canada goose coats they were still wary on Greece, which has a poor reform record and is off track Canada Goose Coats On Sale with its fiscal targets.
