BONDS: Yields in Europe stays elevated
Jun-03 14:07
- The small beat in US NFP has kept Govies under pressure, but Europe continues to lead to the downside.
- BTP has led the downside in Europe, and the BTP/Bund spread breached above 210bps.
- Italian 10yr Yield tested 3.40%.
- In term of Technical, support will be seen at121.53 1.618 proj of the May 12 - 24 - 26 price swing.
- Peripheral spreads are mixed, Italy is 4.5bps wider, while Greece sits 3.4bps tighter.
- Looking ahead, Fed Vice Chair Brainard Discusses Community Reinvestment Act.
- But all the attention is already turning to next week and the Key ECB meeting.
- June contracts:
- Bund futures are down -0.59 today at 149.67 with 10y Bund yields up 4.0bp at 1.274% and Schatz yields up 1.8bp at 0.631%.
- BTP futures are down -0.71 today at 124.86 with 10y yields up 8.6bp at 3.382% and 2y yields up 6.5bp at 1.212%.
- OAT futures are down -0.62 today at 142.24 with 10y yields up 4.5bp at 1.802% and 2y yields up 0.9bp at 0.458%.
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US: 11:00ET/16:00BST: Biden To Deliver Remarks Ahead Of FOMC Decision
May-04 14:02
President Biden's remarks on 'economic growth, jobs, and deficit reduction'
have been brought forward and are now scheduled for 11:00 ET 16:00 BST.
- A livestream of the remarks can be followed here: https://www.youtube.com/watch?v=N_nerGuCbFU
- Biden's remarks come ahead of a FOMC meeting this afternoon which will be followed by a press conference from Fed Chair Jay Powell at 14:30 ET 19:30 BST.
- MNI's Fixed Income analysts wrote in our latest Fed Preview: 'The May FOMC decision will be the most hawkish in recent memory, almost certainly delivering the first 50bp hike since May 2000 and an announcement that the balance sheet will shortly begin shrinking.' (https://marketnews.com/markets/pdfs/mni-fed-previe...)
MNI: US ISM APR SERVICES COMPOSITE INDEX 57.1
May-04 14:00
- MNI: US ISM APR SERVICES COMPOSITE INDEX 57.1
- US ISM APR SERVICES BUSINESS INDEX 59.1
- US ISM APR SERVICES PRICES 84.6
- US ISM APR SERVICES EMPLOYMENT INDEX 49.5
- US ISM APR SERVICES NEW ORDERS 54.6
DATA REACT: Record Price Pressures In US PMI
May-04 13:59
- Service sectors saw surging price pressures as the rate of input price inflation accelerated for the third successive month to the fastest in over 11yrs of data, whilst increased passthrough of higher cost burdens onto clients through hiking selling prices saw a notable acceleration in the pace of charge inflation, for the fourth month running and to the fastest on record.
- Combined with the previously released manufacturing data, the composite PMI showed mounting price pressures with both input prices and output charges increasing at the sharpest rates on record, led by material and labor shortages alongside greater transportation costs.
- Fed hike expectations for the year have conitnued to build (264bps to year-end including an expected 50bps later today) but the next test will be the ISM Services report shortly.
