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Anonymous ID: 0914a2 April 7, 2020, 9:39 a.m. No.8713888   🗄️.is đź”—kun   >>4041 >>4140 >>4323

Lufthansa grounds Germanwings in sweeping restructuring

 

FRANKFURT (Reuters) - Lufthansa (LHAG.DE) on Tuesday said it will ground its Germanwings low-cost airline as part of a broader overhaul which includes cutting flight capacity across the group.

 

Lufthansa will cut capacity at its hubs in Frankfurt and Munich, including reducing the number of aircraft in service for Lufthansa and Eurowings, it said.

 

“Germanwings flight operations will be discontinued. All options resulting from this are to be discussed with the respective unions,” the company said, confirming what two sources familiar with the matter previously told Reuters.

 

Global airlines warned on Tuesday that 25 million jobs across the world could be at risk from the coronavirus travel downturn and the industry’s representative body IATA said airline finances were so fragile they could not afford to refund customers.

 

In Europe the sector is ripe for consolidation.

 

Whereas four airlines control 80% of the U.S. market, Europe has remained fragmented, with the budget segment already in trouble before the chinavirus struck and Lufthansa’s rivals Germania and Air Berlin put out of business

https://www.reuters.com/article/us-health-coronavirus-lufthansa/lufthansa-to-discontinue-germanwings-in-sweeping-restructuring-idUSKBN21P2GW

Anonymous ID: 0914a2 April 7, 2020, 10:22 a.m. No.8714186   🗄️.is đź”—kun   >>4323

Tailing, Mediocre 10Y Auction Prices At Lowest Yield On Record

 

One day after the Treasury sold a tailing, mediocre 3Y auction, which priced just shy of the lowest yield on record, moments ago the Treasury sold $25BN in a 10Y reopening (Cusip Z94) which was first sold in February, and which this time yielded a new all time low of 0.782% down from 0.849% last month, and tailing the When Issued 0.775% by 0.7bps.

 

The Bid to Cover rebounded from last month's 2.36, rising to 2.58, which was above the 6 month average of 2.46.

 

The internals were average if a tad weaker, with Indirects taking down 59.2%, down from 61.0% last month, although the hit rate was just below the 59.5% recent average. And with Directs taking down 13.2%, up from 9.2% last month, Dealers were left with 27.6%, an amount which they will quickly flip to the Fed which has been on full tilt in recent weeks as it monetizes the entire US deficit for 2020 and onward as part of its balance sheet doubling.

 

Overall a mediocre auction, which perhaps is a bit surprising considering the Fed is still buying some $55BN in coupon securities every day.

In response to the tailing auction, 10Y yields briefly rose to 0.78%, session highs, and some 10bps from overnight lows, although they have since faded some of the move higher.

https://www.zerohedge.com/markets/tailing-mediocre-10y-auction-prices-lowest-yield-record

https://www.marketwatch.com/investing/bond/tmubmusd10y