DALY SEES 'NO URGENCY TO ADJUST THE POLICY RATE'

MNI BRIEF: Fed’s Collins Sees Rate Cuts Later Than Had Thought

MNI BRIEF: China March M2 Slows More Than Expected

MNI BRIEF: China Tightens Stock Market Supervision

MNI BRIEF: China Mar Exports Jump On Demand; Imports Improve

MNI: PBOC Sets Yuan Parity Lower At 7.0967 Fri; -4.87% Y/Y

MNI: BAKER HUGHES US RIG COUNT 617; OIL RIGS 506; GAS RIGS 109

March Home Sales Jumped At End Of Month

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

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

EGBs-GILTS CASH CLOSE: Risk-Off Rally Continues

BONDS

Bund yields continued to plummet Thursday, continuing the price action following a below-expected German inflation print Wednesday.

  • Schatz and Bobl yields erased the last three weeks' rise, with the German curve outperforming its UK counterpart.
  • Bull steepening was the common theme as rate hikes were priced out (ECB end-2022 implied rates fell 14bp, BoE -8bp), with growth fears resurfacing (commodity prices dropped sharply, European equities down 1.5-2% to end a miserable half-year).
  • BTP spreads fell to session lows on a Reuters sources report saying the ECB will buy periphery EGB bonds with proceeds from maturing core/semi-core instruments bought under PEPP. But the move eventually faded, due in part to the risk-off move overall, but also perhaps lingering doubts over whether this is a "done deal".

Closing Yields / 10-Yr Periphery EGB Spreads To Germany:

  • Germany: The 2-Yr yield is down 18.9bps at 0.649%, 5-Yr is down 21.6bps at 1.067%, 10-Yr is down 18.3bps at 1.336%, and 30-Yr is down 12.3bps at 1.615%.
  • UK: The 2-Yr yield is down 19.9bps at 1.842%, 5-Yr is down 18.2bps at 1.893%, 10-Yr is down 15.6bps at 2.229%, and 30-Yr is down 10.5bps at 2.564%.
  • Italian BTP spread up 4.6bps at 192.8bps / Greek up 12.8bps at 228bps
BulletMarketsFixed Income BulletsHomepage
BulletMarketsFixed Income BulletsHomepage

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.