UK bond market is sending a signal!
The recent developments in the UK bond market have caught the attention of investors. In June, the UK yield curve (2s10s) experienced an unprecedented decline, marking one of the steepest drops in decades, and it is now approaching -100bps. This significant shift reflects the market's conviction that the Bank of England (BoE) will take decisive measures to combat inflation. However, it also raises concerns about the potential impact on the UK economy and its medium-term growth prospects. Should the BoE keep pushing the limits (rate hikes) until something breaks?
Despite pilot, Swiss National Bank has no plans to launch CBDC
Though the Swiss National Bank is set to pilot central bank digital currencies, or CBDCs, amid a changing financial ecosystem, it doesn’t necessarily have plans to launch one. The pilot is meant to test a wholesale CBDC for “a limited time” to test transactions with market participants on the SIX Digital Exchange, a spokesperson told Blockworks. The central bank sees signs in Switzerland of the development of a new financial ecosystem where transactions take place with tokenized securities and tokenized money — an environment set to make financial markets more efficient. Source: Blockworks
S&P 500 retesting breakout level
SPX Index has now reached the June breakout level at 4325. Are we going to see a rebound from here ? Source : Bloomberg
Limited Pressure from Issuance Activity for European High Yield Bonds in H2 2023!
The European high-yield (HY) market is expected to maintain a positive technical landscape in the second half of 2023, as corporate high-yield refinancing needs remain moderate. This favorable dynamic should counterbalance any potential outflows, as observed on the US market where HY funds are recording significant outflows, but offset by sluggish activity on the primary market. Source: CreditSights
ASML Holdings is back on recent breakout zone
ASML Holdings (ASML NA) is back on May's breakout level. This zone is now a support. Keep an eye on it and see if it holds ? (Source : Bloomberg)
Europe’s debt market sees first live deal halted this year
The EU market saw its first postponement of a live deal this year as borrowers struggled to tighten pricing in an active session for the market.
German building society Bausparkasse Schwaebisch Hall AG halted a €500 mio offering of 10y covered bonds after setting final terms. Source: Bloomberg
SNB Dials Down Interest-Rate Hiking With Quarter-Point Move
The Swiss National Bank delivered the smallest interest-rate hike since it began monetary tightening a year ago while signaling it may act again to tame inflation.
Policymakers led by President Thomas Jordan lifted the key rate by a quarter-point to 1.75%, matching forecasts by most economists surveyed by Bloomberg.
The step is aimed at “countering inflationary pressure, which has increased again,” Jordan said in Zurich. “It cannot be ruled out that additional rises in the SNB policy rate will be necessary to ensure price stability over the medium term.”
Source: Bloomberg
Totalenergies back on July 2021 trend support
Totalenergies (TTE FP) is back again on it July 2021 up trend support. Keep an eye on this level... Will it rebound once again ?
