Free Trial

Unwind Yesterday’s Relief Rally As UK Wages Print Strong

EGBS

Core/semi-core EGBs have unwound most of yesterday afternoon’s relief rally, with Bunds -18 ticks at 131.63.

  • This morning’s firmer-than-expected UK wages provided the initial source of weakness, while the ongoing 30-year DSL tap from the Netherlands will be weighing at the long-end.
  • A stronger-than-expected German ZEW expectations print will have also pressured the space.
  • Today’s ECB speakers (Makhlouf and Rehn) have not deviated from the status quo regarding a likely ECB rate cut in June. Villeroy and Vujcic are scheduled later this afternoon.
  • The German and French cash curves have bear steepened. While 10-year periphery spreads to Bunds generally little changed.
  • Developments in the Middle East alongside several Fed speakers (including Chair Powell after hours) will set the tone for the rest of the session.

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.