A rather quiet session on the bond markets: our OATs stagnate at 3.0760% (-1Pt symbolic), Bunds too, with -1.5Pt bers at 2.4180%, Italian BTPs pull back +0.6Pts to 3.7160.
Traders clearly expect nothing from tomorrow's ECB meeting.

The day was marked by the publication of several figures: Eurostat confirmed its flash estimate for the end of June, with the eurozone's annual inflation rate coming in at 2.5% last month, down slightly from 2.6% in May, while that of the European Union fell from 2.7% to 2.6%.

The strongest contributions to the eurozone's annual inflation rate came from services (+1.84 percentage points, pp), followed by food, alcohol and tobacco (+0.48 pp), industrial goods excluding energy (+0.17 pp) and energy (+0.02 pp).

The lowest annual rates in the EU were observed in Finland (0.5%), Italy (0.9%) and Lithuania (1.0%), while the highest were recorded in Belgium (5.4%), Romania (5.3%), Spain and Hungary (3.6% eachе).

No more action on US T-Bonds, which ended the afternoon perfectly stable compared with Tuesday, at 4.1620%.... and no sign of risk aversion, even though the S&P500 lost -1.3% and the Nasdaq -2.6%.

No reaction to the 0.6% rise in US industrial production in June, including a 0.4% rise in manufacturing output (after a sequential rise of 0.9%).

Also according to the Federal Reserve, which published these figures, the capacity utilization rate in US industry improved by 0.5 points to 78.8% in June, a level which nevertheless remains 0.9 points below its long-term average (1972-2023).

The Commerce Department reported a 3% rebound in US housing starts in June compared with the previous month, to an annualized rate of 1,353,000, following a 4.6% fall in May (revised from an initial estimate of -5.5%).

U.S. housing permits - which are supposed to foreshadow future housing starts - rose by 3.4% to 1,446,000 last month. Finally, housing completions climbed 10.1% to 1,710,000.

Across the Channel, Gilts, which had eased the previous day (to 4.09%), corrected slightly, adding +2pts to 4.110%.




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