Bunds extend losses after US data. The German 10-year rate is now up 8 bp on the day at 2.18%, while the UK Gilt yield has lifted 7 bp to 3.79%. Both jumped higher through the first trading week of the year as markets scaled back excessive rate cut bets. Inflation nudged higher again at the end of 2023, backing central bank warnings inflation rates won’t continue to fall as rapidly as it did at the start of the last quarter. Better than expected US jobs data today further undermined the chances of quick rate cuts from central banks in Europe and the US. Stock markets continued to sell off with bonds and DAX and FTSE 100 are down -0.5% and -0.6% respectively on the day, and the DAX is heading for a more than -1% decline through the first week of the year.
Click here to access our Economic Calendar
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.