Trial now

Stronger In a Range


Weaker In A Range


Ending The Week On A Soft Note


Bearish Risk Growing


Stronger, But Still Vulnerable


SP500 PE Ratio vs. CPI Inflation

Steady ahead of Brexit, Fed and BoE


A steady start for Bonds ahead of a risk events filled week (Brexit, Fed, BoE)

  • Brexit continues to dominate, with trade talks extended and set to continue from today, with no new set deadline.
  • Bund are trading in the red, while peripherals outperforms somewhat, and Italy leads 2.3bps tighter against the German 10yr.
  • Gilts are down 54 ticks at the time of typing, translating in a wider 3.1bps spread versus Germany.
  • The street views the extension of Brexit talks as positive, pushing GBP higher and Gilts lower.
  • US Treasuries have traded in line with EGBs, also helped by overnight news, that a bipartisan group will unveil a $908bn relief bill today. Although, there's no guaranty that it will be passed by congress.
  • Looking ahead, we have no tier 1 data and speakers are scheduled for today.
  • Gilt futures are down -0.35 today at 136.40 with 10y yields up 4.8bp at 0.219% and 2y yields up 3.8bp at -0.84%.
  • Bund futures are down -0.23 today at 178.45 with 10y Bund yields up 1.3bp at -0.625% and Schatz yields up 0.8bp at -0.781%.
  • BTP futures are up 0.11 today at 152.15 with 10y yields down -1.2bp at 0.545% and 2y yields down -0.9bp at -0.454%
  • OAT futures are down -0.12 today at 168.37 with 10y yields up 0.5bp at -0.379% and 2y yields down -0.1bp at -0.733%
  • TY1 futures are down -0-5 today at 138-11 with Bund futures down -0.23 at 178.45 and Gilt futures down -0.35 at 136.40.
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