What one session has done, the next will undo: on Wednesday, yields eased sharply (-7.5pts to 3.1800%): the trajectory is the opposite of the previous day's, and the same applies to the Bund spread (-5pts to 2.5300%), which contracted by -2.5pts (erasing Tuesday's +2.5pt widening).
Further south, Italian BTPs are easing by almost -10Pts to 3.855% and Spanish Bonos are down -7Pts to 3.297%.

In contrast, T-Bonds 2034 appear completely frozen at 4.2950%, while the '30 yr' is easing a little, by -3Pts to 4.4950%.
The only figure of the day was of minor importance: US wholesaler inventories rose by 0.6% in May on a sequential basis, according to the Commerce Department, following a 0.2% increase the previous month (revised from an initially estimated 0.1% growth).

As US wholesaler sales rose by 0.4% in May compared to the previous month, it took them 1.35 months to clear their inventories, a ratio stable compared to that observed in April.

Investors are not expecting any surprises from Fed Chairman Jerome Powell's second hearing before the House of Representatives, scheduled for this afternoon.

Yesterday, in front of the Senate, the Federal Reserve boss had paved the way for a rate cut next September by welcoming the decline in inflation and the easing of tensions on the labor market.

An important point: he highlighted the risk of cutting rates too late or too little, which could have negative effects on economic activity and employment", argues Christopher Dembik at Pictet AM.
Everything is in place for a rate cut in the autumn", concludes the strategist.
The consensus is around 75% for a 1st easing as early as mid-September.

Across the Channel, Gilts imitate US T-Bonds, stagnating at 4.1700%


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