Trial now
BUNDS

Trading at initial target

GOLD TECHS

Resumes The Current Bear Cycle

WTI TECHS

(X1) Probes The Bull Trigger

BUNDS

Trading at the initial target

BOND SUMMARY
BOND SUMMARY: Following yesterday's FOMC meeting in which Chair Powell played
down recent low inflation readings and effectively dismissed the likelihood of
near-term policy rate cuts, UST futures have continued to edge lower. TYM9
trades at 123-12, 1 tick off the low.
- The focus today will be the Bank of England meeting. No major policy
announcements are expected, but the MPC voting split will be closely watched.
With the immediate risk of a no-deal Brexit off the table, one or two members
could see scope to hike the bank rate. Gilt yields are broadly 2-3bp higher on
the day and the curve has flattened slightly. Short sterling futures are 1.0-3.0
ticks lower.
- Core EGBs have traded weaker this morning, albeit within a tight range. The
Jun-19 bund future trades at 165.20, near the middle of the day's range.
- Italian BTPs have rallied with yields ~1bp lower on the day and 4-5bp down
from the intraday highs.
- Euribor futures are broadly flat/0.5 ticks lower.