Free Trial
US TSY OPTIONS

BLOCK, Recent 5Y Bear Play

US TSYS

Market Roundup: Sharp Rate Hike Re-Pricing

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

EGBs-GILTS CASH CLOSE: Historic Rally As Recession Talk Swirls

BONDS

EGBs had one of their strongest daily rallies in recent history Thursday, as much weaker-than-expected June flash PMI data indicated rapidly weakening European economic activity.

  • Amid a bull steepening curve move, Bobl yields fell at one point by the fastest (over 30bp) since 1998, and closed about 60bp off the month's highs.
  • Bunds rallied the most in a decade, testing support at 1.40%.
  • Periphery EGBs and Gilts couldn't keep pace with the blistering German rally.
  • The UK curve shifted down in parallel by about 20bp through the 10Y segment.
  • BTP spreads widened, while GGBs underperformed.

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

Keep reading...Show less
165 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

EGBs had one of their strongest daily rallies in recent history Thursday, as much weaker-than-expected June flash PMI data indicated rapidly weakening European economic activity.

  • Amid a bull steepening curve move, Bobl yields fell at one point by the fastest (over 30bp) since 1998, and closed about 60bp off the month's highs.
  • Bunds rallied the most in a decade, testing support at 1.40%.
  • Periphery EGBs and Gilts couldn't keep pace with the blistering German rally.
  • The UK curve shifted down in parallel by about 20bp through the 10Y segment.
  • BTP spreads widened, while GGBs underperformed.

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

Keep reading...Show less