Bunds: measured concession for EU equity and risk recovery

The 10 year German debt future was marked down off the open in acknowledgment of another swing in sentiment favouring stocks and other riskier assets in wake of Wall Street’s sharp turnaround. However, after the initial gap lower to 163.23 from Thursday’s 163.55 Eurex close the core Eurozone bond has pared losses to just 10 ticks, awaiting confirmation that EU cash bourses will pick up the baton and claw back some of their losses. Bunds do not appear that perturbed by a rebound in Italian BTPs towards 123.00 vs 122.61 at worst and 122.86 at settlement yesterday following denials from officials in Rome about a collective desire to see Economy Minister Tria stand down, and perhaps more importantly a bullish statement from Deputy PM Di Maio claiming that the country will not face EDP measures. Ahead, Italian retail sales data, revised Eurozone Q3 GDP and NFP.