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USDCAD TECHS

Needle Still Points South

US TSYS

Yields Bounce as Equities Make New Monthly Highs

AUDUSD TECHS

Heading North

EURJPY TECHS

Bull Rally Accelerates

COLOMBIA

Economists Survey Raises 2021 CPI Forecast To 4.9%

GILT SUMMARY
GILT SUMMARY: Gilts are trading sharply higher due to risk-off sentiment, but
are off session best levels, as strangely, a technically uncovered German Schatz
auction weighs heavily on the Gilt market.
- The curve has pivoted around the 10-yr area with yield on the 10-yr Gilt
-4.8bp at 1.06%, while 2s/10s spread is 3.5bp flatter and 10/30s 1.2bp steeper.
- Gilts opened sharply higher as markets played catch up following August Bank
Holiday and in reaction to overnight news of N.Korea firing a missile over
Japan, which led to risk-off flows.
- Markets also digesting the start of third round of Brexit negotiations in
Brussels, which have got off to a rather tense start with EU's Barnier warning
the UK that it needed to start negotiating "seriously". While UK's Davies called
on the EU to "show flexibility and imagination".
- EU's Juncker then weighed in saying won't enter new relation talks until
divorce resolved.
- Majority of Swap spreads are trading marginally wider. While Breakevens are
tighter with 10-year and 30-year in the region of 1bp tighter.