MNI: FOMC Statement Comparison - Sept Vs July

FED CUTS BENCHMARK RATE BY 50 BPS; VOTE 11-1

MNI China Daily Summary: Wednesday, September 18

MNI CBRT WATCH: CBRT To Hold Steady, Look For Further Progress

MNI Brief: Beijing's August Newly Built Sales Worsen

MNI: PBOC Net Injects CNY80.7 Bln via OMO Wednesday

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

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

US EIA: CRUDE OIL STOCKS EX SPR -1.63M TO 417.5M SEP 13 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: Gilts Outperform Amid Core FI Gains

BONDS
BulletMarketsFixed Income Bullets

Core EGBs and Gilts rallied Tuesday amid a broader global safe haven bid.

  • There was no evident single trigger for the strong afternoon rally in core FI: factors included lower oil prices (on positive Libyan supply headlines), a drop in tech stocks as the US returned from holiday, and a miss in US data (construction activity and ISM manufacturing).
  • A few comments from ECB officials ahead of next week's decision didn't have a major market impact: Nagel said he wouldn't commit in advance on whether he would vote for a cut; Simkus sees a "clear case", however an October cut is "quite unlikely".
  • Eurex futures volumes were dominated by Sep/Dec rolls, which are by now at least halfway complete.
  • Both the UK and German curves bull flattened. Gilts outperformed global peers, with 15-year Gilt syndication seeing solid demand.
  • Periphery EGB spreads closed wider against the risk-off backdrop, with BTPs underperforming.
  • Wednesday's schedule includes final August services PMIs and Eurozone PPI, as well as an appearance by ECB's Villeroy.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

Keep reading...Show less
237 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.

Core EGBs and Gilts rallied Tuesday amid a broader global safe haven bid.

  • There was no evident single trigger for the strong afternoon rally in core FI: factors included lower oil prices (on positive Libyan supply headlines), a drop in tech stocks as the US returned from holiday, and a miss in US data (construction activity and ISM manufacturing).
  • A few comments from ECB officials ahead of next week's decision didn't have a major market impact: Nagel said he wouldn't commit in advance on whether he would vote for a cut; Simkus sees a "clear case", however an October cut is "quite unlikely".
  • Eurex futures volumes were dominated by Sep/Dec rolls, which are by now at least halfway complete.
  • Both the UK and German curves bull flattened. Gilts outperformed global peers, with 15-year Gilt syndication seeing solid demand.
  • Periphery EGB spreads closed wider against the risk-off backdrop, with BTPs underperforming.
  • Wednesday's schedule includes final August services PMIs and Eurozone PPI, as well as an appearance by ECB's Villeroy.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

Keep reading...Show less