BONDS: EGBs-GILTS CASH CLOSE: German Curve Twist Flattens Pre-ECB
Jun-04 17:36
European curves flattened Wednesday, with Gilts outperforming Bunds.
- Bunds softened early, with Eurozone services PMI revised up, the German cabinet approving corporate tax cuts, and equities gaining ground. EGB weakness spilled over into Gilts.
- Afternoon moves in Gilts in particular tracked US Treasuries, which were buoyed by soft ADP private payroll and ISM Services data.
- For the session, the German curve twist flattened, with the UK's bull flattening.
- Periphery/semi-core EGB spreads were little changed; BTPs modestly outperformed.
- The ECB meeting, with an expected 25bp cut, is Thursday's focus - MNI's preview is here.
- We also get BoE DMP survey, and appearances by Greene and Breeden.
Closing Yields / 10-Yr EGB Spreads To Germany
- Germany: The 2-Yr yield is up 1.2bps at 1.798%, 5-Yr is up 1.6bps at 2.098%, 10-Yr is up 0.3bps at 2.528%, and 30-Yr is down 1.8bps at 2.999%.
- UK: The 2-Yr yield is down 2.3bps at 4.005%, 5-Yr is down 2.8bps at 4.115%, 10-Yr is down 3.2bps at 4.606%, and 30-Yr is down 4.5bps at 5.322%.
- Italian BTP spread down 0.6bps at 96.4bps / French OAT up 0.3bps at 67.3bps
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
GBPUSD TECHS: Retracement Mode
May-05 17:30
- RES 4: 1.3605 1.236 proj of the Feb 28 - Apr 3 - 7 price swing
- RES 3: 1.3550 High Feb 24 ‘22
- RES 2: 1.3510 1.236 proj of the Feb 28 - Apr 3 - 7 price swing
- RES 1: 1.3444 High Apr 28 / 29
- PRICE: 1.3307 @ 15:01 BST May 5
- SUP 1: 1.3257 Intraday low
- SUP 2: 1.3225 20-day EMA
- SUP 3: 1.3041/3035 Low Apr 14 / 50-day EMA
- SUP 4: 1.2968 Low Apr 11
The latest pullback in GBPUSD is considered corrective. A bearish tweezer top formation on the daily candle chart last Monday/Tuesday, highlights a short-term top. Support to watch lies at 1.3225, the 20-day EMA. A break of this level would signal scope for a deeper retracement. Note that moving average studies remain in a bull-mode position, signalling a dominant underlying uptrend. Sights are on 1.3510, a Fibonacci projection.
MNI EXCLUSIVE: MNI Interviews Former Dallas Fed Adviser on Monetary Policy
May-05 17:19
- MNI interviews former Dallas Fed adviser on monetary policy -- On MNI Policy MainWire now, for more details please contact sales@marketnews.com
LOOK AHEAD: Tuesday Data Calendar: March Trade Balance, Tsy 10Y Auction
May-05 17:15
- US Data/Speaker Calendar (prior, estimate)
- 6-May 0830 Trade Balance (-$122.7B, -$137.2B)
- 6-May 1130 US Tsy $70B 6W bill auction
- 6-May 1300 US Tsy $42B 10Y Note auction (91282CNC1)
