Tag Archives: S&P

FI Eye-Opener: Summer plunge ahead?

German bond yields headed higher yesterday, with the 10-year yield rising by 3bp.

German factory orders are expected to rebound in June after a decline of 1.7% m/min May.

EURUSD: Could still recheck the high 1.34s. European (Markit) PMI and the US ISM are the main distractions for the day.

German bond yields edged marginally higher yesterday in a narrow trading range, while US yields closed the day a bit lower.

Euro retail sales are expected to have increased 0.5% m/m in June. Consumerconfidence,

EURUSD: Could recheck the high-1.34s. Last week ended with a potentially bullish ‘Doji’ candle for the period.

Following plenty of releases last week, we are heading for a quieter week on theglobal agenda.

Core bonds rallied on Friday, as there were no real signs of wage pressures in the US (see more below), while curves mostly bull-flattened.

Bond yields tried to rise yesterday on the back of a report showing wage pressures picking up in the US (see more below),

The US employment report and ISM manufacturing will wrap up a busy week.

We expect euro flash CPI for July to reach a new cycle low at 0.4% y/y (consensus0.5% y/y) down from 0.5% y/y in June.

Especially US bonds took a beating yesterday after better-than-expected GDP numbers (see more below).