The week started well for bonds, but all the gains made on Monday and Tuesday were wiped out in a single session.

The serenity of the previous day was fragile, even fake, and nervousness is resurfacing ahead of a much busier weekend on the economic and political fronts (Trump/Biden debate).

On Friday, investors will be keeping a close eye on the release of the PCE price index, the measure of inflation most closely watched by the Fed.
And there's a sharp correction in T-Bonds: the yield on 10-year Treasuries has risen by +8.2pts to 4.32%.

The situation in Europe is little better, with the 10-year Bund at 2.4510% (+3.8pts), OATs of the same maturity at 3.185% (+5.8pts), and Italian BTPs at 3.995% (+4.5pts).
This has resulted in a deterioration in the spread (+2pts) between the yield on French OATs and that on German Bunds, to +73.5 basis points.

This morning, investors learned of an erosion in household confidence in France in June.
At 89, the indicator that summarizes it, calculated from household responses (mainly received before the 10th of the month), is down one point and remains well below its long-term average (100 between January 1987 and December 2023).



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