MNI BRIEF: Canada Commits To Just One Of Three Fiscal Anchors

MNI BRIEF: German Insolvency Rate Slows, 2025 Pickup Expected

MNI BRIEF: Brazil Not Even Close To Fiscal Dominance - David

CORRECTED-MNI BRIEF: Brazil Inflation Rises To 4.87% In Nov

MNI China Daily Summary: Tuesday, December 10

MNI: US REDBOOK: DEC STORE SALES +4.2% V YR AGO MO

US Q3 REV NONFARM PRODUCTIVITY +2.2%; Y/Y +2.0%

US NFIB NOV SMALL BUSINESS INDEX 101.7

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

Gilts move notably higher post-PMI data; German curve holds after Villeroy

BONDS
  • Gilts are leading the way after a significant repricing of BOE hiking expectations following the fourth largest ever month-to-month fall in the UK composite PMI (and exceeding anything prior to the pandemic). The picture for the labour market is also looking gloomy with companies not fully replacing those who have voluntarily left.
  • The gilt curve has seen a notable bull steepening and has dragged 10-year UST and Bund yields higher.
  • After hitting their highest level since May 5 ahead of the data overnight, 2-year gilt yields are almost 11bp lower on the day now.
  • There was no lasting reaction in bond markets to the Eurozone PMI releases.
  • Also this morning we have heard from ECB's Villeroy who said that 50bp hikes are not the consensus of the ECB but that the repo rate would be back at the neutral rate next year (which he described as between 1-2%). This has helped anchor Schatz and the rest of the German curve somewhat, although yields are still lower on the day after the UK PMI print.
  • Looking ahead we are due to receive the US flash PMI data, Richmond Fed and new home sales as well as a speech from Fed's Powell.
  • TY1 futures are up 0-13 today at 119-31+ with 10y UST yields down -4.7bp at 2.806% and 2y yields down -4.8bp at 2.575%.
  • Bund futures are up 0.20 today at 153.31 with 10y Bund yields down -2.7bp at 0.987% and Schatz yields down -1.2bp at 0.392%.
  • Gilt futures are up 0.78 today at 118.77 with 10y yields down -7.8bp at 1.891% and 2y yields down -10.6bp at 1.449%.
HomepageBulletMarketsFixed Income BulletsForeign Exchange Bullets

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.