August 11, 2022 10:58 GMT
European government bonds have broadly traded lower this morning while the dollar remains on the back foot against most G10 FX and equities have traded mixed.
- Gilts have sold off with cash yields pushing up 5-7bp.
- As the fight to succeed UK PM Boris Johnson heats up ahead of the final vote, Liz Truss' team have claimed that Rishi Sunak frustrated efforts to realise the gains from Brexit, while the former Chancellor has accused Truss of U-turning on helping households with soaring energy bills.
- Bunds have weakened with yields up 2-4bp on the day.
- OATs have slightly underperformed bunds with yields up 2-5bp and the curve bear flattening.
- BTPs have broadly firmed with yields up to 6bp lower at the short end.
- There was no European supply this morning and no tier-one data releases.
- Data focus shifts to US PPI and initial claims for July, which will be published later today.