The bond markets showed themselves to be 'unmotivated' this Friday, despite a few statistics.

The heaviness prevailed in the wake of the ECB's 'minutes': the Governing Council was said to be ready to consider further rate hikes, even though this option does not correspond to its basic scenario (nobody believes in further monetary tightening).

On the figures front, Germany's Ifo business climate index edged up to 87.3 this month, compared with 86.9 in October, when economists were expecting an average index of 87.5.
German growth was confirmed at -0.1% in Q3, fuelling suspicions of a recession that could prove to be long-lasting, as the Constitutional Council has just cancelled €30bn of capital expenditure in 2024 in order to respect the budgetary balance.

Bunds nevertheless fell by +2.2pts to 2.645%, OATs barely added +1.5pts to 3.202E (+4pts hebdo) and Italian BTPs were flat at 4.395%.

Across the Atlantic, T-Bonds rallied +7pts to 4.483% (or +5pts weekly), despite PMI figures released in the afternoon that came out a little mediocre: the 'flash' PMI index seems to have stabilized a little above the critical 50-point threshold since September (+0.2% to 50.8), but the manufacturing PMI slipped into contraction territory to 49.4 (vs. 49.9 expected).



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