Free Trial

Brexit headlines dominating markets

BOND SUMMARY

Brexit headlines are dominating markets with core fixed income moving higher and peripheral spreads widening. The main catalyst for the move was a story from The Sun that "Boris Johnson is ready to pull out of talks 'within hours' over EU demands."

  • As expected, gilts are leading the rally, followed by Bunds and Treasuries. Brexit headlines are likely to remain dominant today with Thursday 10 December seen as the practical deadline for a deal to be agreed.
  • There is not much else on the calendar today with the other key events of the week also on Thursday (the ECB meeting where stimulus is expected to be extended and the BOE Financial Stability Report where we may have an update on banks' preparedness for negative rates).
  • TY1 futures are up 0-5+ today at 137-17+ with 10y UST yields down -2.5bp at 0.943% and 2y yields down -0.6bp at 0.146%.
  • Bund futures are up 0.62 today at 177.80 with 10y Bund yields down -3.3bp at -0.582% and Schatz yields down -1.1bp at -0.763%.
  • Gilt futures are up 0.50 today at 134.24 with 10y yields down -4.4bp at 0.306% and 2y yields down -2.7bp at -0.69%.

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.