Another gloomy session on the fixed-income markets: the morning's timid improvement failed to make it past midday, and yields deteriorated in the afternoon: the German Bund posted +2.5Pt to 2.314%, the same for our OATs at 2.826%, while Italian BTPs climbed +4Pts to 3.886%.
Beware, as above 2.345%, Bund yields could climb to 2.4850% and then 2.635/2.6400%.

German industrial production fell much more sharply than expected in December (-1.6%), according to official statistics published on Wednesday, confirming the current downturn in Europe's leading economy: this is the sixth consecutive month of decline.
France, for its part, posted a trade deficit of E100 billion, i.e. +E40 billion compared with 2019 (after -E163 billion in 2022).
France's market share in world trade has fallen from 5.4% to 2.7% in 20 years.
In the United States and in the same theme, the US trade deficit widened slightly to $62.2bn in December 2023, compared with the previous month's $61.9bn (which was revised from an initial estimate of $63.2bn), according to the Commerce Department.

This 0.5% month-on-month increase in the deficit reflects a roughly parallel rise in US imports of goods and services, up 1.3% to $320.4 billion, and exports, up 1.5% to $258.2 billion.

The yield on Treasuries rallied by +2pts to 4.115%, while yields on the '2-year' and '30-year' were 4.400% (unchanged) and 4.321% (+2.5pts) respectively.


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