Cross-Currency Weekly

XCCY markets remained resilient this week, with basis spreads tightening despite a hawkish Fed surprise. Issuance volume surged, driven by Reverse GBP and Reverse Yankee activity.

Key Takeaways

• 1.Cross-currency basis spreads generally tightened despite a hawkish Federal Reserve meeting, benefiting from benign USD funding conditions and positive risk sentiment.
• 2.Increased issuance activity, particularly in Reverse GBP and Reverse Yankee bonds, was a significant driver of market flows and price action across currency pairs.

Table of Contents

• XCCY
• Commentary
• Notable cross border issuance
• Appendix 1: Government bond Asset Swap levels
• Important Information
• Disclosures required under the EU Market Abuse Regulation
• Disclaimer

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