Bonds: Longer-dated debt gains, Greek to launch seven-year issue
By Alexander Bueso
Date: Monday 15 Jul 2019
(Sharecast News) - These were the movements in some of the most widely-followed 10-year sovereign bond yields:
US: 2.10% (-3bp)
UK: 0.80% (-3bp)
Germany: -0.25% (-4bp)
France: 0.01% (-5bp)
Italy: 1.65% (-9bp)
Spain: 0.51% (-6bp)
Greece: 2.31% (-4bp)
Portugal: 0.59% (-7bp)
Japan: -0.11% (+0bp)
Longer-dated Gilts mimicked their US Treasury counterparts on Monday, as traders positioned themselves for a slew of economic data out over the next few session on both sides of the Pond, alongside a bevy of speeches from top Federal Reserve officials, with at least four - including chairman Jerome Powell - set to take to the podium the next day.
In particular, traders would be looking for validation of their expectations for almost four 25 basis point cuts to the target range for the Fed funds rate to between 1.00-1.25% by April 2020.
Traders were also keeping an eye on talks on Capitol Hill to lift the federal debt ceiling, with US Treasury Secretary Steve Mnuchin having reportedly warned that the government was currently on course to run out of money by early October.
Across the Pond in the euro area, during the previous Friday debt ratings agency DBRS reaffirmed Italy's long-term debt at BBB (high) with a stable outlook attached.
Meanwhile in Spain, there was increasing speculation that Prime Minister-elect, Pedro Sanchez, would be unable to climch the support of far-left Podemos, throwing up a serious obstacle to his attempts to form a stable governing coalition.
Further afield, Greece's debt management office announced plans to launch a new seven-year sovereign bond in order to tap into demand for the country's debt.
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