(CercleFinance.com) – This session ended with a slight deterioration in the trend in the United States while the improvement continued in Europe.
The US T-Bonds saw their yield rebound towards 1.475% (+ 3.3Pts) after the publication of 2 leading activity indicators and then of the weekly unemployment barometer (an interesting figure on the eve of the publication of the ‘NFP’).
The IHS Markit- PMI is revised down to 62.1 from the flash estimate of 62.6, but remains close to its highest level since surveys began in May 2007.
For once the US manufacturing ISM seems to be in unison with the ‘markit’ PMI, which has undergone a slight downward revision from 61.2 to 60.6.
What investors will remember is the new increase for the ‘Prices paid’ component which posts a record at 92.1 according to Markit … and the T-Bonds took a little time to react, it is to say consolidate.
In Europe, our OATs eased from -1.2Pts to 0.122% while the PMI for France published this morning by IHS Market fell slightly from 59.4 in May to 59.0 in June … but it is holding up in high water, well above the expansion threshold of ’50’.
“It will take a few months to measure the real impact of supply difficulties on the recovery of the economy after the health crisis”, nuance Joe Hayes, senior economist at IHS Markit.
In the euro zone, the final PMI index recovered from 63.1 in May to 63.4 in June, exceeding its last flash estimate (63.1) and reaching a new all-time high for a fourth consecutive month.
The Bunds end the day little changed (at -0.2030%) and it is the debts of the ‘South’ which benefit from a small buying flow, with Italian BTPs at -2.5Pts towards 0.8030%, and Spanish Bonos which wiped out 2.2Pts to 0.4000%.
Across the Channel, the Gilts suffered a slight increase of + 1Pt to 0.7280%.
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