January 20, 2025 14:01 GMT
BONDS: Second-Round Bid, Moves Still More Modest Than FX & Equities
BONDS
A second-round bid in core global FI markets following the WSJ story playing down the odds of an immediate round of Trump tariff declarations.
- Equity and FX moves remain more pronounced.
- Both gilt and Bund futures have failed to retest session highs.
- Gilts remain wider vs. EGBs.
- UK yields 0.5-1.5bp higher across the curve on the day, while German yields are little changed to 1bp lower.
- TY futures to fresh session highs, although liquidity is thinner there, with cash markets closed owing to the MLK holiday.
- Market participants are clearly wary of any direct pushback from Trump via social media channels, given recent and medium-term history.
100 words