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Bonds Bouncing, But Recovery Shallow

EGB SUMMARY
  • Bond futures across the continent as well as the US are slightly higher Thursday, recouping a small part of the losses suffered yesterday. Mar-22 Treasury futures are higher by just over 6 ticks, trading at broadly the midpoint of the Wednesday range.
  • Improving equity prices are also being reflected in Italian bond markets, with BTP futures over 70 ticks off the weekly lows. This has pressured the Italian 10y yield back to 1.10%, dropping near 5bps on the session.
  • Yield curves are generally trading flatter, with the longer-end outperforming across both German and US curves. News and macro catalysts are few and far between, keeping focus on end-of-year trading and the upcoming call between Presidents Biden and Putin.
  • Data of note Thursday includes MNI Chicago PMI, with markets expecting the data to improve marginally to 62.0 from 61.8 previously. Weekly jobless claims also cross, with consensus looking for a 206k IJC - in line with the prior reading.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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