Our OATs are down 7.5 basis points to 3.246%, Bunds are down 5.8 basis points to 2.5500%, and Italian BTPs are down 10 basis points to 3.978% (back below 4.000%).
Producer prices in the eurozone continued to fall by -0.2% in May, mainly as a result of a sharp drop in energy costs, according to data published by Eurostat on Wednesday.
Energy costs alone fell by 1.1% month-on-month.
On an annual basis, i.e. compared with May 2023, industrial producer prices fell by 4.2% in the eurozone.
In the European Union as a whole, industrial producer prices fell by 0.3% in May, following a 0.7% decline the previous month (over 1 year, producer prices are down 4% in the EU).
In France, the HCOB PMI composite index of overall activity was only marginally down on May, at 48.8 (vs. 48.9), continuing to signal a slight contraction in private-sector activity
Overall, the recent upturn in the HCOB composite PMI index of overall activity in the eurozone came to an end in June, with the index declining for the first time since October 2023, to 50.9 from 52.2 in May.... the 50 threshold is getting closer.
Another positive session in New York (it has just ended, as it was only half a session on Independence Day), with 10-year T-Bonds stuck at 4.345%... but the 2-year is easing by -4.8pts to 4.694%.
A flurry of record highs - and intraday/close doubles - on the S&P500 and Nasdaq reflects an unquenchable appetite for risk since the end of October 2023, and the bullish mechanism was revived 4 weeks ago by the feared political chaos in France (now clearly put into perspective, as demonstrated by the contraction of the spread with the Bund).
This easing on short maturities can be explained by US figures that were not too 'vigorous'.
The US private sector generated just 150,000 jobs last month, slightly below economists' expectations and down for the third month in a row, according to ADP (Automatic Data Processing)
US industrial orders contracted by 0.5% in May 2024, following a 0.4% rise in April (revised from an initial estimate of +0.7%).
The Commerce Department reports that shipments by US industry fell by 0.7% in May compared with the previous month.
Finally, with inventories up by 0.2%, the inventory-to-shipments ratio rose from 1.46 to 1.47 month-on-month.
There were a few signs of resilience, however, with anticipated growth in the US private sector (final estimate) accelerating slightly more than initially estimated in June, according to S&P Global's composite PMI index, which came in at 54.8 in final data, compared with 54.6 in flash estimates and 54.5 for the previous month (production growth accelerated).
The 'services' index thus reached its highest level since April 2022, with a renewed rise in employment.
Finally, the British 'Gilts' ended the day down -5pts at 4.2040%... with no 'macro' information to explain the upturn.
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