BOC SAYS DOESN'T NEED TO ALTER PATH OF QT RIGHT NOW

this is a test, please ignore

MNI BRIEF: Text of Bank Of Canada Interest-Rate Decision

MNI China Daily Summary: Wednesday, July 24

MNI: PBOC Net Drains CNY203.9 Bln Via OMO Wednesday

MNI: PBOC Sets Yuan Parity Higher At 7.1358 Weds; -0.98% Y/Y

US Treasury Auction Calendar

EZ/UK Bond Supply Calendar: BTP Short Term and BTPeis on Thursday

EZ/UK T-Bill Calendar: Italy, UK Auction on Friday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Nord Stream, Italy politics and Fed driving markets

BONDS
  • Gilts and Bunds are being pulled lower by Nord Stream concerns - as the flow of gas to Europe slows and gas prices rise, inflationary concerns build - with SONIA futures up to 5 ticks lower on the day and Euribor futures up to 3.5 ticks lower. This has pulled yields higher across the curve with the German curve bear flattening (but gilts steepening).
  • BTP spreads have widened after S&P yesterday adjusted the outlook for Italy from positive to neutral on concerns that the political uncertainty will slow reforms. 10-year BTP-Bund spreads are now around 240bp - notably above the 200bp level that Bank of Italy President Visco cited as the threshold for levels that would be unjustified by fundamentals.
  • Treasuries have been moving to the beat of their own drum this morning as the market looks ahead to the Fed statement and presser later. A 75bp hike is fully priced by markets with the focus instead on communication surrounding expectations for policy in September and onwards.
  • We will also receive durable goods data today, as well as US trade, inventory and pending home sales.
  • TY1 futures are up 0-0+ today at 119-28 with 10y UST yields down -3.1bp at 2.778% and 2y yields down -2.5bp at 3.031%.
  • Bund futures are down -0.01 today at 156.00 with 10y Bund yields up 0.7bp at 0.929% and Schatz yields up 1.8bp at 0.351%.
  • Gilt futures are down -0.10 today at 117.63 with 10y yields up 0.7bp at 1.922% and 2y yields up 0.2bp at 1.813%.
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.