August 05, 2022 14:14 GMT
- A busier afternoon session for Govies and cross assets.
- Yields spiked higher, following the decent US NFP beat, which also had a higher revision.
- US AHE also beat expectations.
- German 10yr Yield spiked to 0.933%, led by US treasuries.
- Peripheral remains tighter this afternoon, Italy by 5bps.
- Gilt have followed other futures, but lags somewhat against Germany.
- Gilt/Bund spread is now testing the psychological level at 110.00bps, ahead of the next target at 112.00bps.
- Looking ahead, after markets ratings:
- Fitch on France (current rating: AA; Outlook Negative) and Latvia (current rating: A-; Outlook Stable).
- Moody’s on the Czech Republic (current rating: Aa3; Outlook Stable).
- S&P on the European Financial Stability Facility (current rating AA; Outlook Stable) and the European Stability Mechanism (current rating: AAA; Outlook Stable).
- DBRS Morningstar on Sweden (current rating AAA; Stable Trend).
- ALL EYES on US CPI next week.