With few statistics on the agenda this Wednesday, there was little movement on bonds on either side of the Atlantic: US T-Bonds down +2pts to 4.1760%, the '30yr' up +3pts to 4.341%, but the '2yr' up only +1pt to 4.61E.

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.


Copyright (c) 2024 CercleFinance.com. All rights reserved.