Trial now

(Z1) Bearish Trend Condition


(Z1) Bearish Price Sequence


(Z1) Off Recent Highs


(Z1)‌‌ Support Appears Exposed

Sign up now for free access to this content.

Please enter your details below and select your areas of interest.

The German and UK curves finished a busy week on a fairly flat note, though notably yields ended well below intraday highs. Periphery spreads narrowed, with risk appetite gaining (equities stronger).

  • Friday's ECB talk was all about the hawkish dissenting voices: Weidmann and Wunsch explaining why they objected to the new policy guidance.
  • Flash July PMI data were mixed, while still pointing to a sustained expansion in economic activity. Germany surprised higher, France was a touch weaker than expected and the UK posted a significant miss. Earlier, UK retail sales figures were broadly better than expected.
  • The German PMI beat sent Bunds much lower initially, but the move soon reversed.
  • After hours Friday sees ratings reviews: Moody's on Cyprus and DBRS on EFSF, ESM.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

  • Germany: The 2-Yr yield is down 0.6bps at -0.726%, 5-Yr is down 0.2bps at -0.704%, 10-Yr is up 0.6bps at -0.42%, and 30-Yr is up 0.8bps at 0.061%.
  • UK: The 2-Yr yield is up 1bps at 0.079%, 5-Yr is up 1.3bps at 0.279%, 10-Yr is up 1.8bps at 0.584%, and 30-Yr is up 0.3bps at 1.005%.
  • Italian BTP spread down 2.5bps at 103.8bps / Spanish down 2.1bps at 69.1bps