Bunds are following Treasuries and the spread is little changed. Europe is trading the U.S. print, not an inflation story of its own. Reading the Bund on its own shows a move whose cause sits elsewhere.
For a dollar book this is confirmation of the direction, not a second signal. A euro mandate has to name the spread separately if it wants to trade it.
The note stays on the tape. It does not set a fair value for the Bund.
What the desk is watching
- Bunds follow Treasuries
- Spread little changed
- The cause is the U.S. print