Financial Markets Daily Report22 August 2023
With little novelties on the data front, investors started the week resuming their positioning to higher rates for longer selling off sovereign bonds, bringing yields up again. The surge was greater on long-term references and widespread across developed economies, with the US 10-year benchmark rising 9 bps. to hit multi-year highs.
- With little novelties on the data front, investors started the week resuming their positioning to higher rates for longer selling off sovereign bonds, bringing yields up again. The surge was greater on long-term references and widespread across developed economies, with the US 10-year benchmark rising 9 bps. to hit multi-year highs.
- In this context, most stock indices bounced back from Friday's falls, with Chinese ones a salient exception, as the People's Bank of China's cut of a reference rate for bank lending undershot investors' expectations. In commodities, European natural gas prices rose on fears that a strike at an Australian LNG producer could disrupt supplies.
- This week's focus will be on the Jackson Hole conference, where central bankers from around the world will gather from Thursday until Saturday. Friday is the most important day, with both Powell and Lagarde scheduled to speak. On the data front all eyes will be set on the release of the PMIs due on Wednesday, and the German IFO due on Friday.