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Needle Still Points South


Yields Bounce as Equities Make New Monthly Highs


Heading North


Bull Rally Accelerates


Economists Survey Raises 2021 CPI Forecast To 4.9%

EGBS: EGBs are trading mixed with core bonds coming under slight selling
pressure while the rest see some mild buying interest as markets digest latest
reports on trade, tweets from President Trump on GDP number and ECB Draghi
comments yesterday. German 10-yr Bund yield is 0.4bp higher at 0.407% with yield
curve slightly steeper.
- The main takeaway from the ECB statement & press conference was that there was
very little new apart from sounding more confident on rise in inflation and
growth and clarification that the English version of the forward guidance is the
correct one.
- Weaker than expected French Q2 GDP and sharp full in the county's consumer
spending is underpinning a small bid in semi-core bonds. French 2-yr OAT yield
is 0.5bp lower.
- Little further data from the Eurozone today so attention will turn to US
advance Q2 GDP at 1230GMT with Trump looking/hoping for a 4 handle.
- Euribor futures are little changed as markets await key data releases from the
Eurozone next week.