MNI China Daily Summary: Monday, July 1

MNI BRIEF: PBOC To Borrow CGBs In Response To Market Situation

MNI BRIEF: Caixin June Manufacturing PMI Hits Three-year High

MNI: PBOC Net Drains CNY48 Bln Via OMO Mon; Rates Unchanged

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS MON

Bundesbank SA Suggests Core / Services Momentum Slowing

EZ/UK Bond Supply Calendar: UK, Germany Auction on Tuesday

EZ/UK T-Bill Calendar: Spain, Belgium, ESM Auction on Wednesday

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

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

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

EGB/Gilt: Linker Yields Moving on UK Inflation Surprise

BOND SUMMARY
  • Gilts and Bunds have moved to their highest levels of the week and Bund futures have broken through the 20-day EMA as core bonds move higher globally.
  • Peripheral spreads have generally widened a little - led by some of the smaller nations - Lithuania and Cyprus with GGB and BTP spreads also widening out a bit.
  • UK inflation was higher than expected with clothing, transport and furniture driving prices 1.0% Y/Y higher against expectations of 0.6%. Larger surprises were seen in core CPI and RPI. The yield on the 0.125% Aug-28 linker has fallen by 4.3bp at writing whereas on the 1.625% Oct-28 conventional gilt yields have only fallen 2.1bp.
  • Eurozone final CPI was generally in line with the flash and has seen little market reaction.
  • The attention of markets now turns to Minutes - with the FOMC Minutes tonight and the ECB Accounts tomorrow.
  • Friday is the bigger day for data across the region, however, with flash PMIs and UK retail sales/public finance data.
  • Gilt futures are up 0.29 today at 137.34 with Bund futures up 0.35 today at 176.78, BTP futures up 0.25 at 148.09 and OAT futures up 0.36 at 168.78.
BulletMarketsFixed Income Bullets
BulletMarketsFixed 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.