Rates Spark: Issuance Pressure Remains On The Increase

2025-03-13 04:10:00 ET

Summary

• EUR rates levels and curves managed to retrace somewhat on Wednesday with fewer headlines out of Germany to drive the market, but attention turned towards tariffs.
• Germany's fiscal plans will have their first reading in parliament. Despite recent stumbling blocks, yield levels and curves have retraced only very little, and Bunds have even softened again versus swaps.
• The fiscal story also remains tense in the US, as latest fiscal numbers show an ever-widening deficit. DOGE has quite a task at hand.

By Benjamin Schroeder , Padhraic Garvey, CFA

Germany's fiscal reset goes to parliament

EUR rates levels and curves managed to retrace somewhat on Wednesday with fewer headlines out of Germany to drive the market, but attention turned towards tariffs. It still remains a decoupling theme in the sense that US rates have taken the opposite direction on Wednesday, allowing the 10y UST/Bund spread to climb above 140bp again....

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