MNI: FED'S BARKIN STILL CONFIDENT UNDERLYING INFLATION FALLING

MNI China Daily Summary: Friday, January 3

MNI China Press Digest Jan 3:RRR Cut Mooted, Yuan, Consumption

MNI BRIEF: Beijing Boosts Consumer Trade-ins To Cellphones

MNI: PBOC Net Drains CNY88.5 Bln via OMO Fri

MNI: PBOC Sets Yuan Parity Lower At 7.1878 Fri; -2.29% Y/Y

US EIA:NAT GAS STORAGE -116 BCF TO 3,413 BCF JAN 03 WK

MNI: US ISM DEC MANUF PURCHASING MANAGERS INDEX 49.3

MNI: UK NOV M4 MONEY SUPPLY +0% M/M, +2.9% Y/Y

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

BONDS: Weakness Extends

BONDS
BulletMarketsFixed Income Bullets

Little respite for core global FI markets, even with crude oil futures ticking away from session highs and European equities recovering from session lows.

  • Bearish technical themes intact across the space.
  • Spill over from OATs likely the key driver for this morning’s sell off, after French PM Bayrou outlined his desire to cut the deficit (a policy goal that factored into the demise of the previous PM & government).
  • Thin liquidity also factoring into the moves.
  • Bund futures through next support at 133.22, trading as low as 133.10 with bears now eying the November 18 low (132.95).
  • German yields 2.5-6.5bp higher across the curve, bear steepening.
  • 2.40% the next yield target for Bund bears, which protects the November 14 high (2.424%)
  • EGBs little changed to 1.5bp wider vs. Bunds, OATs and BTPs widen the most.
  • OAT/Bund & BTP/Bund within multi-week/month ranges.
  • Next support in gilt futures (91.73) tested, with lows of 91.72 registered.
  • UK yields 3-6bp higher, 5- to 10-Year zone leading the weakness.
  • Gilt spread to Bunds ~1bp wider at 225bp, after the recent retrace from cycle closing highs above 230bp.
171 words

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.

Little respite for core global FI markets, even with crude oil futures ticking away from session highs and European equities recovering from session lows.

  • Bearish technical themes intact across the space.
  • Spill over from OATs likely the key driver for this morning’s sell off, after French PM Bayrou outlined his desire to cut the deficit (a policy goal that factored into the demise of the previous PM & government).
  • Thin liquidity also factoring into the moves.
  • Bund futures through next support at 133.22, trading as low as 133.10 with bears now eying the November 18 low (132.95).
  • German yields 2.5-6.5bp higher across the curve, bear steepening.
  • 2.40% the next yield target for Bund bears, which protects the November 14 high (2.424%)
  • EGBs little changed to 1.5bp wider vs. Bunds, OATs and BTPs widen the most.
  • OAT/Bund & BTP/Bund within multi-week/month ranges.
  • Next support in gilt futures (91.73) tested, with lows of 91.72 registered.
  • UK yields 3-6bp higher, 5- to 10-Year zone leading the weakness.
  • Gilt spread to Bunds ~1bp wider at 225bp, after the recent retrace from cycle closing highs above 230bp.