MNI BRIEF: BOJ Real Export Index Rises 0.5% Q/Q In Q2

MNI China Press Digest July 18: PBOC, Beijing, Arctic Shipping

MNI: PBOC Net Injects CNY47 Bln Via OMO Thurs; Rates Unchanged

MNI: PBOC Sets Yuan Parity Lower At 7.1285 Thurs; -1.29% Y/Y

CHINA PBOC CONDUCTS CNY49 BILLION VIA 7-DAY REVERSE REPOS THURS

CHINA SETS YUAN CENTRAL PARITY AT 7.1285 THU VS 7.1318

UK private regular wage growth shows big drop in single month figures

TLFS transition delayed again

MNI: UK JUN CLAIMANT CHG +32300

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

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

BONDS: Firmer Following Soft UK Retail Sales

BONDS
BulletFixed Income Bullets

Core/semi-core EGBs and Gilts trade at session highs, but ranges remain tight with little notable macro news flow since this morning’s UK retail sales data.

  • UK retail sales were much softer than expected, but the market impact was limited with the data not moving the needle for the BoE’s current monetary policy outlook.
  • German Q1 GDP confirmed flash estimates at 0.2% Q/Q.
  • Comments from ECB’s Schnabel added little new to the debate, once again cautioning against cutting rates too quickly.
  • Bunds are +35 ticks at 130.09, having traded in a 32 tick range this morning. Yesterday’s pre-US PMI high remains some way off.
  • 10-year periphery spreads to Bunds are a touch wider.
  • Gilt futures are +20 at 96.89, testing session highs at typing. We note the potential for an increase in roll activity today, given the limited event risk and the impending long-weekend.
  • The DMO announced the that a new 10-year Gilt will be launched via syndication in the w/c 10 June, in line with MNI’s expectations. We see a risk this gets upsized potentially to GBP10bln (vs GBP8.5bln in the DMO’s funding plan)
  • Gilt yields are -0.5 to -3.5bps today, with the curve bull steepening.
  • The UK/EU data calendar is light today, with broader European focus on next week’s May flash inflation data.
205 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/semi-core EGBs and Gilts trade at session highs, but ranges remain tight with little notable macro news flow since this morning’s UK retail sales data.

  • UK retail sales were much softer than expected, but the market impact was limited with the data not moving the needle for the BoE’s current monetary policy outlook.
  • German Q1 GDP confirmed flash estimates at 0.2% Q/Q.
  • Comments from ECB’s Schnabel added little new to the debate, once again cautioning against cutting rates too quickly.
  • Bunds are +35 ticks at 130.09, having traded in a 32 tick range this morning. Yesterday’s pre-US PMI high remains some way off.
  • 10-year periphery spreads to Bunds are a touch wider.
  • Gilt futures are +20 at 96.89, testing session highs at typing. We note the potential for an increase in roll activity today, given the limited event risk and the impending long-weekend.
  • The DMO announced the that a new 10-year Gilt will be launched via syndication in the w/c 10 June, in line with MNI’s expectations. We see a risk this gets upsized potentially to GBP10bln (vs GBP8.5bln in the DMO’s funding plan)
  • Gilt yields are -0.5 to -3.5bps today, with the curve bull steepening.
  • The UK/EU data calendar is light today, with broader European focus on next week’s May flash inflation data.