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A Little Shy Of Highs In Wake Of ECB Consumer Inflation Expectations Survey

BONDS

The previously flagged uptick in the 1-Year inflation expectations component (to 4.0% from the prior 3.5%%) of the latest ECB consumer survey helps core European & UK FI futures away from best levels of the day. Further out there was a lack of movement in the 3-Year inflation expectations measure within the same survey (steady at 2.5%).

  • Bund futures failed to take out initial resistance areas flagged earlier, while gilt futures ran out of steam ahead of 96.00 after their break through the October high.
  • German cash yields are 1-4bp lower, with a flattening bias apparent on the day, while gilt yields are 2-3bp lower.
  • Tsys have widened vs. European peers, with yields there 1-4bp higher on the day as the belly comes under the most pressure.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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