The issue of 8 to 10 billion euros of French Treasury bonds was very much in demand, with more than 10 billion euros sold (minimum rate of 3.17% on the 10-year).

Our OATs ended the day unchanged at 3.2800%, and the yield spread against the 10-year Bund (stable at 2.5830%) fell back to 70 basis points.

Italian BTPs fell symbolically by +1Pt to 4.008%, while Spanish Bonos eased symmetrically by -1Pt to 3.3900%.

The only statistic on the day's menu was German industrial orders: they fell by -1.6%, whereas a rebound from +0.5% to +0.6% was expected in May.

The UK bond market weakened sharply, with yields up +7pts to 4.2410% on the day of the general election, which is expected to result in a large Labour victory, while the Conservatives led by Rishi Sunak have reached record levels of unpopularity (after 14 years in power... and a Brexit).

Trading in Europe is set to get livelier tomorrow with the resumption of T-Bond trading and the publication of the eagerly awaited 'NFP', the monthly US employment report.

"The macroeconomic situation remains complex at present, and the data provide uncertain information as to the next phase of the current cycle", explains Florian Ielpo, Head of Macroeconomic Research at Lombard Odier Investment Managers.

Once confidence is established, whether on the upside or the downside, markets will be able to choose their own direction", says the analyst.
As for a rate cut in mid-September, this scenario is favored by 70 of traders, and the consensus rises to 84 for a second cut in December.

Published on Wednesday evening, the minutes of the Fed's latest monetary policy meeting showed that inflation remained a major source of concern for the central bank, which cited the term 73 times in its document.



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