Wall Street, which continues to produce a cascade of absolute records (and 3 more on Monday), once again overshadowed the bond markets and T-Bonds (the '10 yr' retested 4.20%, the '30 yr' 4.400%.
But at 5.00 p.m., the trend suddenly reversed, with a 3-point improvement on treasuries, with the 10-year at 4.17% (-2 points) and the 30-year at 4.372% (-0.8 points).

But this technical rebound remains fragile, as Nvidia (+3.3%, the stock is now ahead of Amazon and Google in terms of capitalization at $1,820 billion) continues to boost the US indices, which are off to a flying start this week in what could well be the 15th week of a series of 16.

Despite the recent rise in interest rates, the Nasdaq composite (+0.3%) is back above the 16,000 mark, while the Nasdaq-100 (+0.4%) has just validated the 18,000 mark, peaking at 18,040.

Investors are counting on the series of economic indicators expected in the coming days to maintain the bullish momentum in place since the start of the year.
This will begin tomorrow with the US consumer price index, which is expected to have slowed in January (retail sales were unchanged according to data from giant retailers).

Other important indicators will follow, such as import prices and retail sales on Thursday, before Michigan consumer confidence on Friday.
The strength of the US economy has surprised in recent weeks, particularly on the employment front, suggesting that growth remains solid across the Atlantic despite fears of a coming recession.

In Europe, business seems to have come to a standstill since the summer, with the German chemicals industry suffering a historic 20% drop in volumes (excluding the Covid 'lockdown'), consumer spending is at a standstill, and so is the automotive industry (sales of electric vehicles plummeted since December 17).
This has not prevented a clear deterioration in Bunds and OATs since January 1, and the worst levels since December 1 were tested at around 3.15pm on Monday (2.387%), before a technical rebound and a fall to 2.355% at the end of the day (-2.5pts vs. Friday).

The same scenario applies to our OATs, which "pushed" up to 2.901% before easing to 2.863% (-2.9 basis points), while Italian BTPs shed 5 points to 3.9150% after approaching 4.000% around 3 p.m.

On the other hand, there was no improvement for Gilts, which fell by 1.5 points to 4.100% after peaking at 4.1350% (the worst score since December 5).


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