Summary
[European bond market: Italian bond yields hit the biggest weekly decline in a year]Due to the dominance of summer arbitrage transactions, the bull market in German government bonds and Italian bond yield curves flattened, ignoring the stronger-than-expected impact of US employment data. German 10-year swap spreads widened for the fifth consecutive day, the longest since February. Germany’s 10-year yield is expected to hit its biggest weekly decline this year. Italy’s 10-year government bond yield is expected to hit its biggest weekly decline since July last year. The British debt reduced its growth rate and the long-term debt underperformed. Next week, 10-year and 40-year bonds will be issued. (Zhitong Finance)
Due to the dominance of summer arbitrage trading, the bullish market for German government bonds and Italian bond yield curves flattened, ignoring the stronger-than-expected impact of US employment data. German 10-year swap spreads widened for the fifth consecutive day, the longest since February. Germany’s 10-year yield is expected to hit its biggest weekly decline this year. Italy’s 10-year government bond yield is expected to hit its biggest weekly decline since July last year. The British debt reduced its growth rate and the long-term debt underperformed. Next week, 10-year and 40-year bonds will be issued.
(Source: Zhitong Finance)
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