Free Trial

Core European FI remains under.........>

BOND SUMMARY
BOND SUMMARY: Core European FI remains under pressure, with German 10-yr yields
reaching highest levels since May 2019. Futures volumes beginning to pick up a
little from the holiday period as well, and equities on the front foot. 
- Spanish Dec manufacturing PMI came in above consensus (47.4 vs 47.0 exp) but
the release highlighted weakness at year-end ('sharpest reduction in output in
80 months', according to Markit release). 10-Yr cash ylds up 11bps since Dec 27.
- 0845GMT sees Italy Dec manuf (47.2 exp), then final France/German/EZ/UK PMIs.
- Italian spreads a little wider; political risk as usual seen as driving, BBG
headline "Italy's Government Could Collapse Six Different Ways This Month".
- A few latest levels:
* Mar Bund futures (RX) down 26 ticks at 170.23 (L: 170.19 / H: 170.81)
* Germany: The 2-Yr yield is up 1.8bps at -0.584%, 5-Yr is up 1.3bps at -0.46%,
10-Yr is up 2.3bps at -0.163%, and 30-Yr is up 2.6bps at 0.375%.
* UK: The 2-Yr yield is up 3.6bps at 0.581%, 5-Yr is up 4.9bps at 0.65%, 10-Yr
is up 5.4bps at 0.876%, and 30-Yr is up 5.2bps at 1.38%.
* Italy / German 10-Yr spread 4.9bps wider at 164.6bps

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.