At last, the beginning of an upturn in bond yields, after a phase of +50 basis points since April 1 on T-Bonds maturing in 2034 (4.20/4.70%).
The US fixed-income markets seem to have seen their expectations confirmed by Jerome Powell's latest comments (on Tuesday), which seem to rule out the prospect of a rate cut in June and suggest that only 2 easings would be on the agenda in 2024.
Rates are therefore likely to remain above 5.25% for another 6 months, a zenith synonymous with ever-increasing debt servicing costs.

In other words, sellers are buying the news (or a general 'sell the news', but rates work in the opposite direction), in other words, a form of 'fait accompli' of the worst-case scenario (it may sound a bit far-fetched, but 'insiders' haven't had to climb the yield on the US 2034 T-Bond by +85Pts since January 1 for nothing!).

The '10, which had hit five-month highs yesterday, is finally easing by -8Pts to 4.582%, and this is also taking the pressure off European Treasuries: the German Bund yield is down slightly (-2.2Pts) to around 2.465%, our OATs are down -2.3Pts to 2.9800%, while Italian BTPs are doing better, down -4.7Pts to 3.8250%.

On the other hand, the day's economic agenda was relatively quiet.

The final inflation figures for the eurozone for April were published in the morning.
According to Eurostat, it stood at 2.4% in March, versus 2.6% in February, thus confirming its flash estimate for last month, while the European Union's figure fell from 2.8% to 2.6% month-on-month.

In the United Kingdom, inflation eased to an annualized 3.2% in April, from 3.4% in March, paving the way for a future rate cut by the Bank of England. Gilts took advantage of this to ease -5pts to 4.2900%, after posting their worst level since November 5, 2023 the previous day.

The easing of rates did not benefit gold, which fell back to $2,370 from $2,385 this morning, when rates were stuck on their annual highs

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