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MNI EUROPEAN MARKETS ANALYSIS: Core Yields Holding Lower Ahead Of ECB Later

  • JGB futures richer and just off session highs, +32 compared to the settlement levels. The market responded positively to strong demand metrics at today’s 30-year auction. USD/JPY dipped in the first part of trade, but has recouped most losses.
  • BoJ board member Nakamura stated current easy policy settings were appropriate. Governor Ueda, appearing before parliament, emphasized the need for caution on interest rates due to uncertainties in measuring the neutral rate and suggested that it is appropriate to reduce bond buying as part of the exit process.
  • US Tsy futures sit slightly lower, but ranges have been tight. Australian data showed strongly lending to households, while export growth weakened.
  • Later US jobless claims, May Challenger job cuts, April trade and final Q1 productivity/ULC as well as April German orders and euro area retail sales print. The ECB decision is announced and a 25bp cut is expected.

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  • JGB futures richer and just off session highs, +32 compared to the settlement levels. The market responded positively to strong demand metrics at today’s 30-year auction. USD/JPY dipped in the first part of trade, but has recouped most losses.
  • BoJ board member Nakamura stated current easy policy settings were appropriate. Governor Ueda, appearing before parliament, emphasized the need for caution on interest rates due to uncertainties in measuring the neutral rate and suggested that it is appropriate to reduce bond buying as part of the exit process.
  • US Tsy futures sit slightly lower, but ranges have been tight. Australian data showed strongly lending to households, while export growth weakened.
  • Later US jobless claims, May Challenger job cuts, April trade and final Q1 productivity/ULC as well as April German orders and euro area retail sales print. The ECB decision is announced and a 25bp cut is expected.

MARKETS

Keep reading...Show less