Trial now

WTI, Brent Remain Constructive


Ukraine on Tap


Edging Lower Ahead Of ECB, Claims Data

Sign up now for free access to this content.

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

European sovereign bonds have traded mixed this morning ahead of today's ECB meeting, while equities continue to build on yesterday's gains.

  • The July ECB meeting has taken on significant prominence following the earlier than expected publication of the strategy review this month. Changes to the wording of the monetary policy decision/opening statement are to be expected to reflect both the new formulation of the inflation target (now, officially, symmetric) and the new streamlined and simpler format.
  • The shift in communication - both in terms of style and in articulating the new policy formulation - could trigger some volatility. The ECB could also decide to press the issue of 'persistency' in some way, which would present a dovish risk.
  • Beyond the UK CBI trends data (mixed), there were no data releases of note and no Gilt/EGB supply.
  • Gilts have weakened with cash yields 1-2bp higher and the long end of the curve slightly underperforming.
  • Bunds started on a strong footing, before weakening towards closing levels.
  • The OAT curve has marginally flattened on the back of the short-end weakening a touch and the longer end firming.