BoE might join the negetive rate club

European equity indexes echo losses on Wall St. with CAC 40 underperforming peers, down 1.9%. Indexes trade off the lows with FTSE 100 finding support at Monday’s lows near 5,900. Travel, autos and financial services post the largest declines, with all sub-sectors in the red. U.S. equity futures pare overnight losses to trade either side of unchanged. Yield curves bull flatten, 10y Gilts outperform Bunds by 1bp, 2y yields hit a record low near -0.04%. Short sterling futures add 1-2.5 in the red and green pack with MPC-dated Sonia rates pricing in negative rates at the BOE by 2021. Peripheral spreads trade off session wides, BTPs lag ahead of debt sales. Broad risk aversion remains a dominant theme. Trade in FX is uninspiring. Majors hold tight ranges excluding NZD which remains around the Asian lows versus USD. Crude slips lower. Spot gold holds near $1,700/oz

Source: Bloomberg

0 - Comments