FREELAND: CANADA WON'T ESCALATE OR BACK DOWN ON US TRADE FIGHT

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows

EZ/UK T-Bill Calendar: 8/13/28/50-Week BTF Auction on Monday

EZ/UK Bond Supply Calendar: 4.125% Jul-29 Gilt Due on Tuesday

MNI: CANADA OCT WHOLESALE SALES +3.3%; EX-AUTOS +0.5%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

EGB/Gilt: Hawkish Central Bank Commentary Fuels Sell-Off

BOND SUMMARY

European government bonds have traded lower, while equities have started the week on the back foot.

  • Gilts have underperformed EGBs with cash yields 4-5bp higher across the curve. Hawkish commentary from BoE policymakers over the weekend (Governor Bailey indicated he was "concerned with inflation" and Michael Saunders argued that it was appropriate for the market to price in earlier rate hikes) have underpinned the sell-off.
  • Further fueling the debate around inflation, the ECB's Centeno has stressed that risks remain from supply bottlenecks, while Klass Knot has warned investors to take inflation risks seriously.
  • There is a strong slate of ECB speakers later today (Lane, Stournaras, de Cos, Holzmann, and Elderson)
  • Bunds have similarly traded lower with yields up 2-3bp from the Friday close.
  • OATs trade in line with bunds. The curve is 1bp steeper.
  • BTPs have marginally underperformed core EGBs with cash yields 1-3bp higher on the day.
  • Supply this morning came from Germany (Bubills, EUR3.371bn allotted). Later today France will offer EUR5.6-6.8bn of BTFs.
  • The European data calendar was light this morning with no significant Tier one releases.
Homepagemarkets-real-timeBulletMarketsFixed Income 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.