MNI BRIEF: BOJ Urges Bank Vigilance Against Tail Risks

MNI BRIEF: China Aims To Digitalise 70% Of Firms By 2025

MNI BRIEF: Q1 Cross Border Activity Up 117.8% - Ministry

MNI: PBOC Conducts CNY2 Bln Via OMO Weds; Liquidity Unchanged

MNI: PBOC Sets Yuan Parity Lower At 7.1020 Thurs; -5.02% Y/Y

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS THURS

Q1 Industry Survey Suggests H1 Growth Tailwind

Indonesian Sov Curve Flattens, Barclays See BI Cutting Next Week

Australia Mar Unemployment Rate 3.8%

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

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Core FI off overnight highs but gilts move higher despite higher CPI

BONDS
  • Treasuries and Bunds are off their overnight highs following the missile strike in Poland as it remains unclear if the situation was caused by friendly fire or a stray Russian missile. Russia has denied any responsibility and risk has recovered somewhat. The Treasury curve has seen a bit of a bear steepening while the German curve has marginally flattened.
  • Gilts have been more moving to their own beat following this morning's inflation print. Headline CPI was 0.4ppt above consensus expectations and 0.2ppt above the Bank's forecasts while core CPI remained at 6.5%Y/Y rather than falling back 0.1ppt as had been expected. Much of the upside surprise came from energy and food prices which lead to the upside coming largely through higher goods prices. PPI output costs were lower than expected. Overall, the details were less concerning than the headline surprise would suggest and gilts are now higher on the day. Expectations for the December MPC meeting rose to around a 55% probability of a 75bp hike but have since fallen back to around 45% (in line with yesterday's levels).
  • Looking ahead we have US retail sales and import / export prices as well as manufacturing production.
  • Four MPC members (Bailey, Broadbent, Mann and Dhingra) will testify ahead of the TSC later today while the Fed's Williams will deliver the keynote speech at the Treasury Market Conference. We will also hear from the ECB's Lagarde and Villeroy and the Fed's Waller.
  • TY1 futures are down -0-0+ today at 112-17+ with 10y UST yields up 2.8bp at 3.800% and 2y yields up 2.4bp at 4.365%.
  • Bund futures are down -0.15 today at 139.18 with 10y Bund yields down -0.1bp at 2.104% and Schatz yields up 1.1bp at 2.123%.
  • Gilt futures are up 0.21 today at 105.18 with 10y yields down -1.0bp at 3.280% and 2y yields up 0.3bp at 3.071%.
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.