Free Trial

Higher oil prices the main driver of the day

BONDS
  • Bear flattening has been the story of core FI markets this morning with the rise in the oil price on the back of the surprise OPEC+ cut in output announced over the weekend the main driver of markets this morning. Although some of the early flattening has been moderated as 10-year yields have started to catch up with the moves seen in the short-end.
  • 2-year UST, Schatz and gilt yields have all moved between 6-7bp higher on the day while 10-year UST and Bund yields have moved slightly less and 10-year gilt yields are up 4.9bp on the day.
  • This morning's final PMI data was broadly in line with the flash so saw little market reaction while the highlight of today's session will be the ISM manufacturing data (including the prices paid and employment components) which is due at 15:00BST / 10:00ET.
  • TY1 futures are down -0-9 today at 114-20+ with 10y UST yields up 6.6bp at 3.536% and 2y yields up 7.0bp at 4.097%.
  • Bund futures are down -0.54 today at 135.30 with 10y Bund yields up 6.1bp at 2.350% and Schatz yields up 6.8bp at 2.741%.
  • Gilt futures are down -0.16 today at 103.19 with 10y yields up 4.9bp at 3.535% and 2y yields up 6.1bp at 3.489%.

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.