Trial now

Heading North


Modi, AMLO Top Major Economy Leader Poll, Macron Last


Under Pressure


Trend Condition Remains Bearish

Sign up now for free access to this content.

Please enter your details below and select your areas of interest.

EGBs have traded weaker this morning while gilts has firmed alongside broad gains for equities and FX vs the dollar.

  • Preliminary European PMI data for October were mixed relative to expectations, though continuing to point towards sustained expansion in economic activity. There was a notable surprise for the UK series with the services print coming in at 58.0 vs 54.5 expected.
  • UK retail sales for September disappointed with the ex Auto Fuel series down 0.6% M/M vs expected growth of 0.3% and marking the fifth straight month of contraction.
  • The gilt curve has bull steepened with the 2s30s spread 2bp wider.
  • Bunds have traded lower with cash yields broadly 1-2bp higher on the day and the belly of the curve underperforming.
  • It is a similar story for OATs where yields in the belly of the curve have pushed up 2bp.
  • BTPs yields are also 1-2bp higher across the curve.
  • Supply this morning came from the UK (UKTBs, GBP2bn).