It's been a quiet start to the week for bonds, with volatility remaining particularly low for over 10 hours.

Treasuries have broadly recovered what they lost on Friday, and are back on their levels of last Thursday (BoE meeting, weekly unemployment figures), reflecting the absence of key elements for the past 3 sessions.
This week should be more animated, with US inflation figures on Wednesday, but also a speech by Jerome Powell tomorrow: he will speak at the annual conference of the Foreign Bankers Association in Amsterdam.

Will the Fed Chairman give us any information on his inflation expectations (April was the 37th month above 3%)?

After a little hesitation, the '10-yr' eased -2.5pts to 4.478%, but the '2-yr' only erased -1.5pts (4.853%).
European Treasuries closed with scores virtually identical to Friday's: Bunds and OATs ended unchanged at 2.505% and 3.015% respectively, while Italian BTPs 'eased' by 0.8Pt to 3.8550%.
British Gilts posted the opposite spread, with +0.8Pt to 4.211%.


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