Interest rates: little action in the EU and US, UK Gilts at 4.05
The disappointing CPI inflation figures published the previous day were well digested, as was the surge in stock market indices, with risk-on weighing only marginally on the reputedly safer Treasuries.
In Europe, Bunds and our OATs fell by just +1Pt to 2.363% and 2.803% respectively, while Italian BTPs ended perfectly unchanged at 3.588%.
To regain a semblance of volatility, we need to look across the Channel: the Gilts had indeed reopened on a sustained note (-5Pts to 3.9250%), but the trend was completely reversed during the session, closing at 4.051% and rising by almost +7.5Pts in 24H.
Note the lively late afternoon in the "energy" sector, with a barrel of oil climbing +1.8% to close at $84 in London ($83.9) and $80 on the NYMEX: this rise in oil prices was not considered worrying on March 13, but if it persisted, it could bring back the risk of a rise in inflation, thwarting the scenario of 4 rate cuts by the FED this year.
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