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BONDS: Uptick In Energy Prices Also Weighs

BONDS

The uptick in crude oil futures will be an incremental source of pressure for core global FI markets. The move in crude has been relatively gradual, with both WTI & Brent up nearly $1 last.

  • A 2% uptick in benchmark TTF natural gas prices also seen.
  • Both 2-Year EUR ZCS and 5y5y inflation-linked swaps are 2bp+ higher on the day.
  • Middle Eastern tensions remain front and centre, with Iran issuing warnings against Israeli attacks on its nuclear facilities.
  • This comes after the Hezbollah drone attack on Israeli leader Netanyahu’s home.
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The uptick in crude oil futures will be an incremental source of pressure for core global FI markets. The move in crude has been relatively gradual, with both WTI & Brent up nearly $1 last.

  • A 2% uptick in benchmark TTF natural gas prices also seen.
  • Both 2-Year EUR ZCS and 5y5y inflation-linked swaps are 2bp+ higher on the day.
  • Middle Eastern tensions remain front and centre, with Iran issuing warnings against Israeli attacks on its nuclear facilities.
  • This comes after the Hezbollah drone attack on Israeli leader Netanyahu’s home.