European Fixed Income Summary
First Published Friday, 10 July 2009 from Need to Know News
European debt futures are up on the day with Bunds outperforming after today's ECB announcement, which confirmed that rates are on hold for a protracted period. Gilts underperformance was supported by the 30-year Gilt auction (which sent Gilts sharply lower), BoEspeak and credit conditions survey (see below). Today's European calendar had eurozone May producer prices, which dropped to -5.8% y/y (median -5.6% y/y) from -4.6% y/y in the previous month. Meanwhile, the unemployment rate jumped to 9.5% (median 9.3%) In the U.K., the BoE Q2 Credit Conditions Survey showed increased availability of corporate credit, but rising spreads, meanwhile the construction PMI fell back to 44.5 in June, from 45.9. Elsewhere, the Riksbank unexpectedly cut the repo rate by 25bp to 0.25% (median was for a steady 0.50% rate) and the SNB suggested it may broaden its range of collaterals. As of 15:23GMT the September 10-year Bund future is up 72 ticks on the day at 121.64, while the corresponding Gilt future is up 26 ticks at 117.64. In the cash market the 10-year Bund yield is down 8 bp at 3.33% and the 10-year Gilt yield is down 3 bp at 3.74%.
- LEH comes blasting back into the collective consciousness - Banks are distancing themselves from LEH dealings
Citi said early this morning that they see nothing in the 2000 page LEH post-mortem that worries them....continued
- JPM CEO: 'Banks Have to Be Allowed to Fail...Banks Should Pay for Bank Failure'
...continued
- Consumer Sentiment down but not out
Businesses appear to have it just about right with flat inventories coinciding with increasing trepidation on the part of consumers....continued
- Investment Banks Higher, GS Up 1.3%, MS Up 1.9%
...continued
- Weekly ECRI US Leading Econ Index: 130.6 from 129.8
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