MNI BRIEF: China Nov CPI Slows To 5-Month Low Of 0.2% Y/Y

MNI: PBOC Sets Yuan Parity Higher At 7.1870 Mon; -1.39% Y/Y

MNI: China CFETS Yuan Index Down 0.36% In Week of Dec 6

MNI: PBOC Net Injects CNY13.8 Bln via OMO Monday

MNI BRIEF: PBOC Increases Gold Reserves

CORRECTED-MNI: Fed's Hammack-Near Or At Time To Slow Rate Cuts

MNI JAPAN Q3 GDP REV +0.3% Q/Q; PRELIM +0.2%; MEDIAN +0.2%

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT PRELIMINARY DEC INDEX 74.0

CANADA NOV IVEY PURCHASING MANAGERS INDEX 52.3 SA

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: Taking Cues From Tsys Following U.S. Data

GILTS
CEEMEABulletUKGlobalFixed Income BulletsRegionMarkets

UK paper takes cues from Tsys in the time since the higher-than-expected U.S. CPI & weekly jobless claims data crossed.

  • Futures initially traded to fresh session lows of 95.83, breaching round number support at 96.00, before rebounding to last trade at ~96.25.
  • Yields 1-5bp higher on the day, curve bear steepens.
  • The Fed’s focus on preventing further softening in the labour market (albeit with claims data skewed by Hurricane Helene) meant that IJC outweighed the firmer-than-expected CPI reading.
  • We also noted that the components that drove the upside surprise in the CPI data have little readthrough into the Fed’s preferred PCE inflation measure, likely blunting the market impact of the release.
  • Little of note when it comes to market-moving UK news flow, although Guardian sources recently flagged a potential increase in capital gains tax, with the Labour Government reportedly testing a range of 33% to 39% for the tax.
  • Legal & General have identified a preference for gilts over Tsys & Bunds, based on expectations for an expedited BoE rate cutting cycle, looking to fade the recent widening in UK paper.
175 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.

UK paper takes cues from Tsys in the time since the higher-than-expected U.S. CPI & weekly jobless claims data crossed.

  • Futures initially traded to fresh session lows of 95.83, breaching round number support at 96.00, before rebounding to last trade at ~96.25.
  • Yields 1-5bp higher on the day, curve bear steepens.
  • The Fed’s focus on preventing further softening in the labour market (albeit with claims data skewed by Hurricane Helene) meant that IJC outweighed the firmer-than-expected CPI reading.
  • We also noted that the components that drove the upside surprise in the CPI data have little readthrough into the Fed’s preferred PCE inflation measure, likely blunting the market impact of the release.
  • Little of note when it comes to market-moving UK news flow, although Guardian sources recently flagged a potential increase in capital gains tax, with the Labour Government reportedly testing a range of 33% to 39% for the tax.
  • Legal & General have identified a preference for gilts over Tsys & Bunds, based on expectations for an expedited BoE rate cutting cycle, looking to fade the recent widening in UK paper.