Free Trial

/EGBs-GILTS: A fairly quiet start......>

BOND SUMMARY
BOND SUMMARY: /EGBs-GILTS: A fairly quiet start for core EGBs and Gilts Friday,
stuck between yesterday`s ECB meeting and today`s U.S. nonfarm payrolls release.
- Bund Sep19 futures down 8 ticks at 171.31; Gilts down 9 ticks at 130.29.
- Strong rally in BTPs to start the day though, with 2Yr / 10Yr spreads to
Germany down 7+bps to lowest since May 7-8. No particular catalyst seen.
- Weak Apr German indust. prod out this morning (-1.9% Y/Y vs -0.5% est.) while
Bundesbank cut the 2019 German GDP outlook to 0.6% (was 1.6%).
- OATs flat; data showed French indust. prod picking up in Apr as expected.
- Italian industrial production and retail sales out later.
- ECB`s Draghi and Coeure are due to participate in the G20 finance / cenbank
meetings in Japan. Nowotny appears in Vienna at 0900UK time.
- Earlier, ECB`s Vasiliauskas called the inflation outlook `not bad`, clarified
GC`s rate cut discussion by emphasising `all possible tools` examined.
- Most focus today will be on trade developments, with U.S. tariffs on Mexico
looming, and on U.S. nonfarm payrolls, which are particularly significant given
weak ADP payroll numbers earlier in the week amid Fed rate cut speculation.

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.