Italy took centre stage yesterday after the inconclusive result from the general election. Price action in Italian Government bonds is certainly not positive for the markets. After an initial weak opening, domestic institutions took prices higher and yields lower after the initial re-pricing of the yield curve. The gradual selling throughout most of the day, […]
Archives for February 2013
Chaotic Markets — FIU
Today was a day that the financial markets used to have back in 2008. It was a fairly quiet start to the European trading session which was dominated by a poor German 10yr Bund auction which saw German 10yr yields hit 1.675% at the end of the morning session. There had been some US Investment […]
Current market fundamentals — FIU
It is becoming difficult to trade on fundamentals at the moment. The markets are dominated by sentiment which in itself is being driven by political noise. Firstly, the US Treasury market back up in yields has not been driven by a rise in inflation expectations as would have been expected. In fact forward inflation expectations […]