FREELAND: CANADA WON'T ESCALATE OR BACK DOWN ON US TRADE FIGHT

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows

EZ/UK T-Bill Calendar: 8/13/28/50-Week BTF Auction on Monday

EZ/UK Bond Supply Calendar: 4.125% Jul-29 Gilt Due on Tuesday

MNI: CANADA OCT WHOLESALE SALES +3.3%; EX-AUTOS +0.5%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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

Continued reaction to Powell

BONDS

Bear steepening has been the theme of core fixed income markets this morning as European investors continue to digest comments yesterday from Powell that seemed to put a faster pace of tapering pace back on the table. The Eurodollar strip has underperformed the Euribor and short sterling strips this morning.

  • There was a sharp move lower in Bunds around 8:00GMT/3:00ET with no new headline trigger. The moves seem to be attributed largely to continued reaction to Powell yesterday.
  • Gilts have continued their downside moves following a very weak 10-year auction which saw a tail of 1.9bp (last matched in June 2019). Liquidity in gilt markets remains constrained, particularly with the lower supply and continued buying over the next three weeks from the BOE.
  • Looking ahead ISM manufacturing will be the highlight (with ADP employment due before that). US data will be back in focus after Powell's comments yesterday.
  • TY1 futures are down -0-16 today at 130-10 with 10y UST yields up 4.8bp at 1.495% and 2y yields up 3.5bp at 0.603%.
  • Bund futures are down -0.53 today at 171.84 with 10y Bund yields up 3.4bp at -0.317% and Schatz yields up 2.0bp at -0.777%.
  • Gilt futures are down -0.43 today at 125.85 with 10y yields up 6.5bp at 0.872% and 2y yields up 10.3bp at 0.573%.
HomepageBulletMarketsFixed Income BulletsForeign Exchange Bullets

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.