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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.
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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.