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

UK SEP MANUFACTURING PMI 51.5 (FLASH 51.5, AUG 52.5)

MNI BRIEF: Riksbank Minutes Show Focus On Inflation Undershoot

MNI BRIEF: Turkish Inflation Expectations Ease As CBRT Holds

FED'S POWELL: COMMITTEE NOT IN A HURRY TO CUT RATES QUICKLY

MNI NBP WATCH: Policy Hold As Data Shows Inflation Persisting

EZ/UK Bond Supply Calendar: UK, Germany Auction on Wednesday

EZ/UK Bond Supply Calendar: UK, Germany Auction on Wednesday

MNI: US BLS: JOLTS QUITS RATE 1.9% IN AUG

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: OATs Give Up Early Outperformance On Geopolitics

BONDS
BulletMarketsFixed Income Bullets

European bonds rallied sharply Tuesday, with geopolitical concerns driving a safe-haven bid later in the session.

  • Core FI and periphery EGBs alike enjoyed gains in the morning, led by OATs on reports of forthcoming French fiscal tightening measures.
  • OATs would give up some of their gains later in the day after French PM Barnier failed to follow up with policy specifics - 10Y to Bund -2.1bp on the day, vs -5.2bp at the intraday tights.
  • Global core FI soared in mid-afternoon trade with risk spreads widening as Iran launched missiles at Israel.
  • Data was not a market mover: Eurozone September flash inflation had been anticipated after national-level data already released; manufacturing PMI data from Italy (below-consensus) and Spain (above-consensus) likewise failed to move the needle.
  • The German and UK curves both bull flattened. Periphery EGB spreads closed mixed, but little changed overall.
  • Wednesday's calendar includes Eurozone labour market data and several ECB speakers including Schnabel and Lane, as well as the record of the September BoE FPC meeting.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

Keep reading...Show less
236 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.

European bonds rallied sharply Tuesday, with geopolitical concerns driving a safe-haven bid later in the session.

  • Core FI and periphery EGBs alike enjoyed gains in the morning, led by OATs on reports of forthcoming French fiscal tightening measures.
  • OATs would give up some of their gains later in the day after French PM Barnier failed to follow up with policy specifics - 10Y to Bund -2.1bp on the day, vs -5.2bp at the intraday tights.
  • Global core FI soared in mid-afternoon trade with risk spreads widening as Iran launched missiles at Israel.
  • Data was not a market mover: Eurozone September flash inflation had been anticipated after national-level data already released; manufacturing PMI data from Italy (below-consensus) and Spain (above-consensus) likewise failed to move the needle.
  • The German and UK curves both bull flattened. Periphery EGB spreads closed mixed, but little changed overall.
  • Wednesday's calendar includes Eurozone labour market data and several ECB speakers including Schnabel and Lane, as well as the record of the September BoE FPC meeting.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

Keep reading...Show less