A heavy-handed approach prevailed, by the skin of its teeth, on the bond markets in both Europe and the US.
Today's spreads are marginal at best, if not insignificant: not even +0.3 basis points on US T-Bonds at 4.004% at the end of a session in which 95% of trading remained trapped in a 4.000/4.050% corridor.
The 'figures of the day' proved to have no impact: the US trade deficit narrowed by around -2% to $63.2 billion in November 2023, compared with the previous month's 64.5 billion (which was revised from an initial estimate of $64.3 billion), according to the Commerce Department.

US investors remain cautious, awaiting US inflation figures (Thursday), while the quarterly earnings season is also approaching across the Atlantic.

Consolidation dominated in the EU, but without the slightest intensity (low volumes): Bunds rallied +3.7pts to 2.18%, despite a frank disappointment for the German manufacturing sector (industrial production fell by 0.7% in November 2023, the 6th consecutive month of decline).

Our OATs are also down by +3.7% to 2.718%, the same gap for UK Gilts (to 3.819%) and Italian BTPs are off by +3pts to 3.834% (lasting similarity between Italian and UK 10-years).

Also on the Old Continent, the seasonally-adjusted unemployment rate in the Eurozone came in at 6.4% in November 2023, down from 6.5% in October, while the EU rate stood at 5.9%, compared with 6% the previous month, according to Eurostat data.



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