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Bonds: gross calls reach 2.0% above the federal funds rate



These were the movements in some of the yields of the 10-year sovereign bonds most closely followed:

EE. US: 2.34% (-1 bp)
United Kingdom: 1.23% (-3 bp)
Germany: 0.30% (-3bp)
France: 0.61% ( -1 pb)
Spain: 1.43% (+ 2 pb)
Italy: 1.73% (+ 2 pb)
Portugal: 1.88% (-1 pb)
Greece : 4.81% (-3 bp)
Japan: 0.06% (+ 1 bp)

The Gilts went up, along with the similar government debt of the United States and Germany, before the key monthly employment report of the United States for November. The launch of Friday and the next policy meeting of the Federal Reserve in the following week.

Prior to these two key risk events, the "market talk" revolved around making gains in risk assets around the world after a strong year so far as political risks in the United States.

"As discussed in our FX Prospects last week, we do not see that the US tax plan is fundamentally favorable for the USD, and the overall risk remains higher than in previous administrations" Analysts at UniCredit Research said in a note sent to customers.

On a related note, on Wednesday the so-called & # 39; Bind King & # 39; & # 39; Bill Gross said Bloomberg News that a federal funds rate above 2.0% might not be sustainable.

However, the current yield differential between two and 1

0 year US Treasury notes was, Gross reportedly reported.

In fact, at one point in the session on Wednesday that spread reached its narrowest level in a decade: 50 basis points.

In this context, the advisory ADP reported that the payrolls of the private sector grew by 190,000 in November (consensus: 190,000), after an increase of 235,000 in the previous month.

In response, Ian Shepherdson in Pantheon Macroeconomics said: "What is not clear from these data is whether the ADP deficit signals that the surveys exaggerate the demand, or just that employee The rs do not You can find all the people you want to hire, given the unemployment rate of 4.1%, however, we have to adjust our expectations for the Friday number after this report, now we are looking for an official 180K holder. that pace is enough to keep the unemployment rate on track to reach only 3.5% by mid 2018. The rate has not been seen since 1969, when the CPI base inflation was 6%. "[19659002] Meanwhile, the Department of Labor reported that unit labor costs in the United States fell at a rate of 0.7% during the year -years during the third quarter.

During the three months up to September, and in terms of quarterly change rates, unit labor costs were reduced by 0.2% (consensus: 0.3%), revealed the same revised work figures. [19659013]
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