ITALY DATA: Services PMI mixed details; price rises "most pronounced" in a year
Apr-03 07:51
There were some mixed details in the Italian services PMI report (with the index 0.5 points below consensus at 52.5, 53.0 prior). The most significant in our view was the increase in output prices rising at the "most pronounced" in a year.
- "Amid reports of increased wage burdens, overall operating expenses ticked higher, with the rate of inflation at its strongest in nearly a year. Companies raised their charges in response, and at a pace that was among the most pronounced seen over the past year"
- "Explaining the rise in output, panellists reported new business wins and increased efforts to finalise projects as key drivers."
- New business volumes: "The rate of expansion was above the series average, albeit only modest and softening on the month."
- "Service providers in Italy remained confident that activity levels would rise over the coming 12 months. Firms were hopeful that geopolitical conditions would improve and for greater new client wins. The degree of positive sentiment deteriorated noticeably in March, however, to its lowest level in nearly one-and-a-half years, as some panellists were concerned regarding the progression of the economic and geopolitical climate in the year ahead."
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US TSY FUTURES: Huge TY Block Drives Sell Off
Mar-04 07:50
Reason for the sell off unearthed, with a 78K block trade in TYM5 futures registered at 07:33:06 London/02:33:06 NY. Was conducted at 111-19, with the market 111-23 bid at the time.
BONDS: Big selling Volumes in Treasuries, helping EGBs lower
Mar-04 07:45
- Treasuries are getting sold off here, limiting the upsides in EGBs, Bund falls back lower, not seen a new trigger on this Treasury move lower, but some heavy early Volumes are going through, around 39k TYM5 sold in the past 5 minutes.
- Also recall that we do have some heavy supply in Europe today, out of the UK, Germany and Netherlands.
- Small support in TYM5 is at 111.09+, while USDJPY edges to session high on the move higher in Yields.
USD: A mixed session in G10s going into the European session
Mar-04 07:31
- Aside from the known Volatile Yen, the USDJPY already trades in a 105 pips range overnight, the Dollar was mostly flat Overnight against G10s.
- The Aussie was the worst early performer as Tariffs came into effect, the Overnight printed low in AUDUSD was the lowest in a Month, since 4th February, but has now recovered 20 pips off the low to trade at mid range going into the Europe session despite the Risk tilted to the downside.
- The Yen is still the best performer, up 0.25%, but trades right in the middle of the 148.60/149.65 (low/High) range at 149.14.
