MTS Markets

We are pleased to announce that MTS Markets has officially launched its first listing on Snowflake. The Snowflake marketplace provides users with access to exclusive datasets and unique products, and we’re proud to be a part of its growing framework.    Available now, the MTS Cash Daily Summary Time Series data product offers comprehensive insights into traded volumes and prices for European Government Bonds (EGBs). To view the listing, visit: https://lnkd.in/gJzqT3y7   #Snowflake #FixedIncome #EGB

We are delighted that MTS Markets has been crowned Best Market Operator (OTC Instruments) at last week’s 2024 European Market Choice Awards.   The award win underpins our commitment to excellence and innovation in financial markets. We would like to thank Markets Media for recognising our success, and to our clients for their ongoing support.    To read the full list of winners, visit: https://lnkd.in/gfiFNzvG   #MTSMarkets #Award #FixedIncome #MarketOperator #EMCA2024

Follow MTS for weekly insights into the EU & US #bond markets. Read the market analysis below for the week closing Friday July 5th ↓↓↓ • Political risk remained an important market mover last week, primarily due to pressure on OATs and peripheral bonds ahead of the second round of French parliamentary elections held over the weekend. • This contrasted the political landscape in Great Britain where elections were held last Thursday. The Labour Party's victory was widely anticipated by the market and no significant increase in volatility was observed afterwards. • While the gilt performed well, the market will be watching closely for the first steps of the government led by the new Prime Minister Keir Starmer. The expectations are for relative stability with no surprises in terms of fiscal policy.  • The central bankers' meeting held in Sintra, Portugal, earlier last week delivered no surprises regarding the next steps of monetary policy. Therefore, the likelihood of more rate cuts after August will depend on macroeconomic developments. • Consequently, the various data released last week were watched with attention.  • In the Eurozone, the PMI Index indicated some improvement in both Manufacturing and Services. More notably, the preliminary inflation data for June released on Wednesday showed a slight improvement in the CPI Index, which decreased marginally to 2.5% year-over-year, even though core inflation (excluding food and energy) remained at 2.9%. • On the same day, ahead of the 4th of July holiday, several significant data points were released in the USA: a falling ADP employment index, rising jobless claims, negative factory orders and a decreasing ISM index for Services – a scenario that is not optimistic for the real economy but consistent with increased support for fixed income. In this situation, the yield on the US 10-year benchmark decreased sharply reaching 4.35%. • The last data release of the week, once again from the United States, was potentially the most important and anticipated on both sides of the Atlantic: the nonfarm payrolls variation of +206k was above expectations but still lower than the previous month's increase of 218k. • The latest statistics on salaries showed no increase and the slight rise in unemployment to 4.1% suggested a labour market that is not overheating, consistent with the 'soft landing' rhetoric and the consequent possibility of a rate cut in September. Consequently, bonds increased their gains, with the 10-year benchmark yield falling to 4.30%. • In the Eurozone, bonds behaved similarly: the yield on the 10-year Bund, after reaching 2.63% on Wednesday, fell by 8 bps following the first round of US data and reached 2.55% after the payrolls report. There were no tensions in the peripheral markets, awaiting the second round of the French elections. The BTP-Bund spread between the two 10-year benchmarks tightened progressively over the week, closing on Friday below 140 bps.

We are proud to announce that MTS Markets has been named Best Market Operator (OTC Instruments) at the European Market Choice Awards. This accolade underscores our dedication to innovation and excellence in financial markets. At MTS Markets, we translate our clients' needs into advanced technology, becoming an essential part of the industry’s infrastructure. Thank you to Markets Media for this recognition and to our clients for their continued support.   #MTSMarkets #Award #FixedIncome #MarketOperator #EMCA2024

Follow MTS for weekly insights into the EU & US #bond markets. Read the market analysis below for the week closing Friday June 21st ↓↓↓ • Even with some movement in bond prices, the market sessions last week appeared much less volatile compared to previous ones, when central banks, inflation data, and the EU elections created a complex and unstable environment.    • Despite the relative stability, last week was not empty of significant macroeconomic events, particularly from the USA. On Tuesday, retail sales rose by only 0.1% MoM—significantly below expectations—causing a 10bp drop in the 10-year benchmark yield in a single day, reaching a weekly low of 4.20%. This marked a notable shift in market sentiment, highlighting concerns about consumer spending and economic growth.   • The mid-week closure on Wednesday did little to stabilize the situation, as improving jobless claims data on Thursday prompted a rebound in yields. This was further influenced by the release of the PMI Index on Friday, which showed manufacturing at 51.7 and services at 55.1.    •In the Eurozone, the post-election period saw a strong flight to quality, driving yields to levels not seen in months. Starting the new week at 2.35%, the Bund 10-year yield rose progressively. However, after a slow increase of 10bp throughout the week, Friday brought new support for Bunds following the release of disappointing PMI data in the Eurozone, with manufacturing falling to 45.6 and services also decreasing to 52.6. These figures underscored the ongoing economic challenges facing the region.   •The situation for peripheral Eurozone countries was particularly interesting. There was significant pressure immediately following the elections, and the situation remains far from normalized. This is compounded by formal warnings issued to several EU countries, including Italy and France, regarding their fiscal discipline. The upcoming snap election in France next Sunday will add another layer of uncertainty to the mix.   • Despite these challenges, recent OAT auctions in France were well received, indicating a degree of investor confidence. In Italy, the BTP-Bund spread tightened compared to levels seen the previous week, closing at 153bp on Friday afternoon.

MTS has successfully migrated its Primary Data Centre to a cutting-edge facility in Bergamo - the Aruba Global Cloud Data Centre IT3.   By sharing the same data centre with other Euronext markets, this transition enhances efficiencies across European capital markets, providing customers with seamless access to MTS Markets’ Trading and Data services.   Watch the video for more insights into this migration.   For more information, contact: mts.sales@euronext.com   #FixedIncome #Bonds #Trading

Follow MTS for weekly insights into the EU & US #bond markets. Read the market analysis below for the week closing Friday June 7th ↓↓↓ • There were quite a few market movers last week with a very busy agenda that included macroeconomic data releases as well as central bank meetings. • In the first part of the week, attention was focused on the Purchasing Manager’s Indexes on both sides of the Atlantic. In the Eurozone, PMI fell in both the Manufacturing and Services Indexes. Meanwhile, in the US, despite an improvement for Services, the ADP National Employment Report that was released on Wednesday (which provides information on the labour market), was worse than expected.  • All of this data contributed in supporting bonds in both the US and the Eurozone whereby the relevant 10-Year benchmarks marked their lowest yields of the week on Wednesday - the Treasury touched 4.28% and the Bund was at 2.5%. • The ECB meeting on Thursday was of course the most important event of the week for the Eurozone, despite the fact that the 25bp rate cut was largely expected and thereby incorporated into the market prices. However, in the press conference, further information about the institution's approach was disclosed, starting with the evaluation of price evolution. • Inflation remains a concern, and according to the ECB, it will take until 2026 to reach the 2% target, hence why the central bank will maintain a relatively prudent 'meeting-by-meeting' approach. It's uncertain how many rate cuts will be delivered in the second part of the year, which is why the meeting was perceived as ‘hawkish’ by the market and the Bund rose to 2.67% immediately afterwards. • The US labour market data released on Friday afternoon came as a surprise to the market. While unemployment saw a marginal increase, the payrolls increased by more than 100,000, which was unexpected, and wages were surprisingly on the rise as well. • This details that the battle against inflation in the US is also far from being won, making the task of the FED (which meets on June 11th and 12th), even more difficult. • The reaction from the global market after the release of Payrolls data was clear and strong - the 10-Year Treasury saw an immediate spike of 10bp, closing the week at 4.45%. The Bund reacted similarly, rising to 2.67%. Peripheral bonds experienced a significant yield increase, with the BTP-Bund spread widening to 1.34% at market closure.

Follow MTS for weekly insights into the EU & US #bond markets. Read the market analysis below for the week closing Friday May 31st ↓↓↓ • A comparative analysis of the bond market on both sides of the Atlantic shows how different factors are influencing fixed income, particularly due to the divergent trends assumed by economic variables. • In the US, a renewed concern for inflation has caused a fairly uniform increase in the yield of the benchmark 10-Year Treasury in recent weeks, reaching almost 4.65% last Wednesday. • Despite this, several negative economic data points provided periodic support for bonds. After the peak, the bonds experienced a 5bp decrease on two occasions. Once on Thursday, following lower GDP figures and increased jobless claims, and the other on Friday, following an unchanged PCE deflator (but a slight decrease in core PCE), as well as declining personal income and spending. • In the Eurozone, whilst the US data had some impact, the recent trend of yield increases appeared unchanged. Bond traders continue to monitor inflation developments closely.  • The ECB will meet on Thursday 6th June and expectations for a 25bp rate cut are widespread, particularly given that the central bank has somewhat downplayed recent data indicating a rise in EU wages. • Nonetheless, the consumer price data released last week was displeasing to the public. Excluding Italy, several major economies, including Germany, France, and Spain, noted increases in domestic inflation. This raised the Eurozone's overall level to 2.5% year-over-year from 2.4%. • Unsurprisingly, after the data release, the 10-Year Bund reached a weekly high and its highest level since November, with a yield of almost 2.7%, before partially retracing after the US data. • There was no particular tension in the periphery, with the BTP-Bund spread consistently trading around 130bp and closing the week just above this level. • Yet after the market closed, rating agencies released their credit updates on several countries. Moody’s maintained Italy’s rating, while Standard and Poor’s downgraded France.

We are excited to welcome Nick Sollom to MTS as Head of Business Development and Strategy.

📊 The “Second Report on the Liquidity of the Secondary Market of Italian Government Bonds - Year 2023" is now available online: https://lnkd.in/eWw4GUMF   🤝 This annual Report is the result of the collaboration between the Italian Treasury Department – Public Debt Directorate Ministero dell'Economia e delle Finanze, MTS Markets, and CRIEP - Interuniversity Research Centre on Public Economics. It analyses the #liquidity conditions in the inter-dealer market for Italian government securities (MTS Italy).    🎤 Presented on May 21st at the Borsa Italiana headquarters in Milan, with industry experts, the Report explores various dimensions for assessing market microstructural liquidity. This includes the quoting activity and the willingness of market makers to offer competitive prices for executing buy and sell orders of government securities, as well as the trading activity on the market platform.   The focus is primarily on microstructural liquidity, measured using established metrics based on scientific literature and market best practices. The Report also considers the technological advancements that have significantly impacted the operations of intermediaries in financial markets in recent years.   A special section of the Report examines the #repo market and its role in the liquidity of the spot market.   The second edition of the Report covers the year 2023.   #MTS #Liquidity #MEF #Governmentbonds #SecondaryMarkets