MNI: PBOC Net Drains CNY203.9 Bln Via OMO Wednesday

MNI: PBOC Sets Yuan Parity Higher At 7.1358 Weds; -0.98% Y/Y

CHINA PBOC CONDUCTS CNY66.1 BILLION VIA 7-DAY REVERSE REPOS WEDS

CHINA SETS YUAN CENTRAL PARITY AT 7.1358 WEDS VS 7.1334

MNI BRIEF: China Wants U.S. Firms To Deepen Investment

MNI China Daily Summary: Tuesday, July 23

Market round-up post PMIs

PMIs indicate solid growth; less cost pressures from wage increases

MNI: UK JUL FLASH MANUFACTURING PMI 51.8 (FCST 51.0); JUN 50.9

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

EGBs-GILTS CASH CLOSE: More Bear Flattening

BONDS
BulletMarketsFixed Income BulletsHomepage

European curves bear flattened for a second consecutive session Thursday, as central bank cutting expectations continued to be pared.

  • The major market mover on the day was a surprisingly strong US April flash Services PMI reading, which saw Treasuries drop sharply, dragging Bunds and Gilts to session lows in the afternoon.
  • Earlier, firmer-than-expected German flash PMIs more than countered the impact of a softer-than-expected French services print. UK (and to a lesser extent, Eurozone) PMIs were softer than expected, while the price components appeared mildly dovish.
  • Eurozone Q1 negotiated wages accelerated versus Q4, but this brought limited reaction as it had been telegraphed by Wednesday's German data.
  • By the cash close, implied ECB 2024 cuts had been pared to 59bp, vs 64bp Wednesday - the BoE equivalent was 33bp, vs 37bp yesterday and 55bp prior to Wednesday's CPI print.
  • Bunds underperformed Gilts. Periphery EGB spreads were little changed.
  • UK retail sales and German GDP data feature first thing Friday.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

Keep reading...Show less
227 words

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.

European curves bear flattened for a second consecutive session Thursday, as central bank cutting expectations continued to be pared.

  • The major market mover on the day was a surprisingly strong US April flash Services PMI reading, which saw Treasuries drop sharply, dragging Bunds and Gilts to session lows in the afternoon.
  • Earlier, firmer-than-expected German flash PMIs more than countered the impact of a softer-than-expected French services print. UK (and to a lesser extent, Eurozone) PMIs were softer than expected, while the price components appeared mildly dovish.
  • Eurozone Q1 negotiated wages accelerated versus Q4, but this brought limited reaction as it had been telegraphed by Wednesday's German data.
  • By the cash close, implied ECB 2024 cuts had been pared to 59bp, vs 64bp Wednesday - the BoE equivalent was 33bp, vs 37bp yesterday and 55bp prior to Wednesday's CPI print.
  • Bunds underperformed Gilts. Periphery EGB spreads were little changed.
  • UK retail sales and German GDP data feature first thing Friday.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

Keep reading...Show less