The bond markets began the day on a hesitant note, but with no sign of an upturn after Friday's and Monday's setbacks: an easing finally took shape by mid-day, in the wake of the T-Bonds (-4.6Pts to 4.121%), which had just deteriorated by +26Pts in a straight line and in 48 hours of trading (in the wake of the Fed's reassessment of its interest rate cut trajectory).

The 10-year German Bund yield eased a little, from 2.300% to 2.2920%, our OATs returned from 2.8100% to 2.795%, while Italian BTPs erased -5Pts to 3.8500%.

In terms of indicators, this morning investors took note of German industrial orders: these rose by 8.9% in December 2023 on a month-on-month basis after adjustment for seasonal and calendar variations, according to Destatis, following stability in November (revised from an initial estimate of +0.3%).

In the manufacturing industry, December's sharp rise was due to a very high volume of large orders in various sectors. In particular, an exceptionally large number of aircraft were ordered.

Finally, across the Channel, Gilts eased -1.5pts to 3.9850%, which is still +65pts higher than the yield on the Greek 10-year bond, which has peaked at 3.334%.


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