MNI BRIEF: ECB's De Guindos Calls For EU Retail Saving Product

MNI BRIEF: BOJ's Ueda Says Markets Unstable, Vigilance Needed

US SEP MANUFACUTURING PMI 47.3 (FLASH 47.0, AUG 47.9)

MNI NBP WATCH: Rates Held As Energy, Wages Push Up Prices

MNI BRIEF: NBP Keeps Key Interest rates unchanged

MNI BRIEF: Turkish Inflation Expectations Ease As CBRT Holds

EZ/UK Bond Supply Calendar: Spain, France Auction on Thursday

US EIA: CRUDE OIL STOCKS EX SPR +3.89M TO 416.9M SEP 27 WK

US MBA: REFIS -3% SA; PURCH INDEX +1% SA THRU SEP 27 WK

CANADA: Politics Week: Parliament Opens With Early Election Threats

AUSTRALIA: Albanese Lines Up Budget for May Election

AUSTRALIA: Albanese Lines Up Budget for May Election

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

BONDS: EGBs-GILTS CASH CLOSE: Geopolitical Risk Premium Reversal

BONDS
BulletMarketsFixed Income Bullets

Bunds and Gilts retreated Wednesday, conceding most of Tuesday's late gains.

  • Yields rose fairly steadily throughout the session, in an apparent unwinding of Tuesday's Israel-Iran geopolitical risk premium. Solid US private payrolls data weighed on the space in the afternoon, with heightened sensitivity ahead of Friday's US nonfarm payrolls report.
  • Data was limited; Eurozone unemployment was in-line with expectations, though Spain saw a smaller-than-expected rise in unemployment.
  • Both the UK and German curves bear steepened, with Gilts underperforming - exacerbated by a relatively soft 5Y auction.
  • OATs outperformed (10Y/Bund -1.1bp), as more details of French fiscal tightening plans emerged including on sizeable spending cuts added to "temporary" tax raises.
  • Periphery EGB spreads were little changed after some widening earlier in the session.
  • A speech by ECB's Schnabel will be watched after the cash close for potential signals for an October cut (currently 95% priced - we go through the latest analyst expectations for the ECB rate path in our Eurozone Inflation Insight released today).
  • Thursday's calendar is highlighted by the UK DMP data which has become one of the most watched releases for BoE MPC members looking at firms’ expectations for hiring, wage growth and price growth. We also get final September services PMIs.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

Keep reading...Show less
273 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.

Bunds and Gilts retreated Wednesday, conceding most of Tuesday's late gains.

  • Yields rose fairly steadily throughout the session, in an apparent unwinding of Tuesday's Israel-Iran geopolitical risk premium. Solid US private payrolls data weighed on the space in the afternoon, with heightened sensitivity ahead of Friday's US nonfarm payrolls report.
  • Data was limited; Eurozone unemployment was in-line with expectations, though Spain saw a smaller-than-expected rise in unemployment.
  • Both the UK and German curves bear steepened, with Gilts underperforming - exacerbated by a relatively soft 5Y auction.
  • OATs outperformed (10Y/Bund -1.1bp), as more details of French fiscal tightening plans emerged including on sizeable spending cuts added to "temporary" tax raises.
  • Periphery EGB spreads were little changed after some widening earlier in the session.
  • A speech by ECB's Schnabel will be watched after the cash close for potential signals for an October cut (currently 95% priced - we go through the latest analyst expectations for the ECB rate path in our Eurozone Inflation Insight released today).
  • Thursday's calendar is highlighted by the UK DMP data which has become one of the most watched releases for BoE MPC members looking at firms’ expectations for hiring, wage growth and price growth. We also get final September services PMIs.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

Keep reading...Show less