The decorrelation between equities and Treasuries is becoming more radical by the day: interest rates are rising inexorably, and stock market indices are piling up record highs (already 8 for the S&P500 since January 1, including 6 in 8 sessions, making you wonder if money has no other destination than the S&P500).
At the same time, US T-Bonds are rising again (+6.6pts), with the '10-yr' reaching 4.165%, the '30-yr' up +6.1 to 4.3700%... and the '20 yr' back up to 4.45%.
Few figures to get your teeth into this Thursday in the USA: US jobless claims confirm the hypothesis of a 'soft landing' for the US economy, with a further drop of -9,000 claimants to 218,000.

According to the Labor Department, the four-week moving average - more representative of the underlying trend - came in at 212,250, up 3,750 on the previous week's revised average.

Lastly, the number of people receiving regular benefits fell by 23,000 to 1,871,000 in the week to January 22, the most recent period available for this statistic.

FED members are taking it in turns to push back the horizon of rate easing, with perhaps no more than 2 to 3 rate cuts envisaged in 2024 - and perhaps not before the end of the 1st half of the year - due to growth that remains singularly robust... which contrasts with the recession that is taking hold in the Eurozone, and most severely in Germany, where 15% of companies are said to be in difficulty.

Despite this climate of crisis, the deterioration in bond yields has not spared Europe, and in particular the 10-year Bund, which finished above 2.36% (+6Pts).
Our OATs are up +6pts to 2.87% and Italian BTPs are up +11pts to 3.9330%.
Across the Channel, Gilts are up +9pts to 4.095% as industrial activity continues to decline.








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