Free Trial
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.
BONDS
Wednesday’s main development was continued pressure at the front end of European curves as near-term central bank hike pricing ratcheted higher. The UK and German curves bear flattened, with Gilts underperforming.
- Today’s catalysts were higher-than-expected Italian and Eurozone August inflation, with multiple analysts changing their calls for next week's meeting to reflect a 75bp hike (the market is now pricing in 67bp, vs 54bp last week). BoE currently 62bp for September.
- Plenty of attention on the monthly closes, with yields across the German and UK curves rising by their most in decades - 2s and 5s in both the UK and Germany saw their biggest monthly rises since at least the early 1990s. 2Y UK yields rose a total of 131bp in August.
- High-beta periphery instruments underperformed, with 10Y Italian and Greek spreads widening 3/4bp on the day.
Closing Yields / 10-Yr Periphery EGB Spreads To Germany:
- Germany: The 2-Yr yield is up 4.9bps at 1.202%, 5-Yr is up 5bps at 1.391%, 10-Yr is up 3bps at 1.541%, and 30-Yr is up 2.4bps at 1.627%.
- UK: The 2-Yr yield is up 10.1bps at 3.021%, 5-Yr is up 9.4bps at 2.764%, 10-Yr is up 9.7bps at 2.801%, and 30-Yr is up 9.9bps at 3.078%.
- Italian BTP spread up 3.2bps at 235.2bps / Greek up 4.2bps at 256.6bps
UK 2Y Generic Yield, pp Change On MonthSource: Bloomberg, MNI
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok