MNI: PBOC Net Injects CNY25.7 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Higher At 7.1897 Thurs; -2.25% Y/Y

MNI: PBOC Net Drains CNY195.3 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Lower At 7.1868 Weds; -2.18% Y/Y

MNI: JAPAN NOV SERVICES PPI +3.0% Y/Y; OCT UNREV +2.9%

MNI China Daily Summary: Tuesday, December 24

MNI: US REDBOOK: DEC STORE SALES +5.0% V YR AGO MO

MNI: US DEC PHILADELPHIA FED NONMFG INDEX -6

EZ/UK Bond Supply Calendar: BOE APF Sales Due 6 January

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

BONDS: Bunds and Gilts Recover From Intraday Lows

BONDS
BulletMarketsFixed Income Bullets

Bund futures have closed the opening gap lower, but remain -21 ticks at 132.89 today. Gilt futures have similarly bounced from intraday lows, now -32 at 95.98.

  • Overnight weakness (also seen in crude oil/gas futures) was seemingly a function of unwinding geopolitical risk premium after Israel’s restrained weekend attack on Iranian military targets.
  • There was no obvious headline driver for the recovery from lows, which may reflect lower inflation expectations stemming from the energy pullback.
  • Bund and Gilt yields are up to 1bp higher at typing.
  • The 10-year OAT/Bund spread is 1.5bps tighter at 73.5bps, after the worst-case scenario of a rating downgrade from Moody’s was avoided on Friday (rating was affirmed at Aa2). The agency opted to place the country’s outlook on Negative, which was in line with consensus expectations.
  • Meanwhile, broader 10-year peripheral spreads to Bunds are tighter with European equity futures 0.4% higher.
  • This week’s Eurozone calendar is headlined by the flash October inflation and Q3 GDP rounds, beginning on Wednesday.
  • In the UK, focus remains on Wednesday’s budget. MNI’s preview is here: https://mni.marketnews.com/3YBr39n
170 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Bund futures have closed the opening gap lower, but remain -21 ticks at 132.89 today. Gilt futures have similarly bounced from intraday lows, now -32 at 95.98.

  • Overnight weakness (also seen in crude oil/gas futures) was seemingly a function of unwinding geopolitical risk premium after Israel’s restrained weekend attack on Iranian military targets.
  • There was no obvious headline driver for the recovery from lows, which may reflect lower inflation expectations stemming from the energy pullback.
  • Bund and Gilt yields are up to 1bp higher at typing.
  • The 10-year OAT/Bund spread is 1.5bps tighter at 73.5bps, after the worst-case scenario of a rating downgrade from Moody’s was avoided on Friday (rating was affirmed at Aa2). The agency opted to place the country’s outlook on Negative, which was in line with consensus expectations.
  • Meanwhile, broader 10-year peripheral spreads to Bunds are tighter with European equity futures 0.4% higher.
  • This week’s Eurozone calendar is headlined by the flash October inflation and Q3 GDP rounds, beginning on Wednesday.
  • In the UK, focus remains on Wednesday’s budget. MNI’s preview is here: https://mni.marketnews.com/3YBr39n