MNI China Daily Summary: Friday, December 27

MNI BRIEF: BOJ: Rate Hike Chance Nearing; Mull Patiently

MNI: PBOC Net Injects CNY6.2 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Lower At 7.1893 Fri; -2.12% Y/Y

MNI JAPAN NOV FACTORY OUTPUT DROPS 2.3% M/M; OCT +2.8%

MNI JAPAN NOV JOBLESS RATE AT 2.5%, UNCHANGED FROM OCT

US EIA:NAT GAS STORAGE -93 BCF TO 3,529 BCF DEC 27 WK

MNI: US JOBLESS CLAIMS -1K TO 219K IN DEC 21 WK

MNI: US REDBOOK: DEC STORE SALES +5.0% V YR AGO MO

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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

BONDS: EGBs-GILTS CASH CLOSE: Steepening Selloff Resumes Post-Holiday

BONDS
BulletMarketsFixed Income Bullets

European yields rose Friday in the return to trading from the Christmas holidays, with periphery EGB spreads tightening as Bunds underperformed Gilts.

  • Much of the initial weakness in the re-open was due to catch-up with US Treasuries (both pre-and post-Dec 24/25 trade) after the reopen
  • But EGBs also suffered from higher energy prices after Russian President Putin suggested gas flows through Ukraine might not continue into the new year.
  • The UK and German curves bear steepened on the day; German 2s10s are now at the steepest since October 2022. 10Y Bund yields held below the 2.40% level but saw their highest close in 6 weeks, and Gilts the highest since Oct 2023.
  • BTPs led relative strength in periphery EGBs, with 10Y/Bund touching the tightest levels since Dec 16.
  • Monday's schedule features Spanish and Portuguese flash December CPI, to kick off the extended Eurozone inflation reporting round (the EZ print is on Jan 7).

Closing Yields / 10-Yr EGB Spreads To Germany

Keep reading...Show less
222 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 yields rose Friday in the return to trading from the Christmas holidays, with periphery EGB spreads tightening as Bunds underperformed Gilts.

  • Much of the initial weakness in the re-open was due to catch-up with US Treasuries (both pre-and post-Dec 24/25 trade) after the reopen
  • But EGBs also suffered from higher energy prices after Russian President Putin suggested gas flows through Ukraine might not continue into the new year.
  • The UK and German curves bear steepened on the day; German 2s10s are now at the steepest since October 2022. 10Y Bund yields held below the 2.40% level but saw their highest close in 6 weeks, and Gilts the highest since Oct 2023.
  • BTPs led relative strength in periphery EGBs, with 10Y/Bund touching the tightest levels since Dec 16.
  • Monday's schedule features Spanish and Portuguese flash December CPI, to kick off the extended Eurozone inflation reporting round (the EZ print is on Jan 7).

Closing Yields / 10-Yr EGB Spreads To Germany

Keep reading...Show less