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  • Bunds closed +3-5bps after firmer-than-expected UK wages while stronger-than-expected German ZEW expectations print also pressured the space while various central bank speakers came across the day including hawkish comments from the Fed’s Powell and Jefferson.
  • Main/XO closed +1.5bp/+6.5bp to bring WoW moves to +8bp/+42bp. €IG/€HY cash closed +4bp/+22bp (+9bp/+35bp WoW) in the fourth worst day for the €IG index of the past year. +10yr €IG spreads underperformed 1-3yr by 1.5bp (now 14bp YTD) while Cons Cyclicals underperformed at nearly +5bp. Comms, Cons Cyclicals and Cons Staples are now over 10bp wider WoW while Energy outperforms at +7bp.
  • SXXP closed -1.5% with all sectors in the red as Basic Resources underperformed at -3%. Notable €IG movers in the European session were Adecco -11%, SES -10%, Arcelormittal -7%, Fresenius +5% and Naturgy +3%.
  • Asian equities broadly lower Japan lower though Chinese shares rebounded as the regulator tried to ease concerns around new exchange rules. Oil prices eased a touch. Stoxx 50 futures are +0.2% after the SPX closed -0.2%.

GMT/Local

Impact

Country

Event

0600/0700

***

UK

Consumer inflation report

0600/0700

***

UK

Producer Prices

0900/1100

***

EU

HICP (f)

0900/1000

**

UK

Gilt Outright Auction Result

0900/1100

EU

ECB's Cipollone in Italian Banking Meeting

1100/0700

**

US

MBA Weekly Applications Index

1205/1305

UK

BoE's Greene on IIF Panel

1230/0830

*

CA

International Canadian Transaction in Securities

1300/1500

EU

ECB's Cipollone at IIF Global Outlook Forum

1430/1030

**

US

DOE Weekly Crude Oil Stocks

1545/1745

EU

ECB's Schnabel Speaks At IRFMP

1600/1700

UK

BoE's Bailey In IIF Fireside Chat

1700/1300

**

US

US Treasury Auction Result for 20 Year Bond

1800/1400

US

Fed Beige Book

1800/1900

UK

BoE's Haskel At Kings College London Panel

2000/1600

**

US

TICS

2130/1730

US

Cleveland Fed's Loretta Mester

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