Inflation - EUR
USDi: Mixed NFP receives a mixed reception by BEs
A mixed November NFP print left BEs mixed and flatters amid a broader risk-off move this session.
USDi: BEs stop their post-Powell moping and join the party
BEs stopped their post-Powell moping and actively joined today’s robust revival in risk sentiment.
EURi: Inflation bear-steepens as flows diverge
Euro inflation bear-steepened today amid selling of cash breakevens versus demand for long end swaps.
USDi: BEs ignore risk-on party before it ultimately peter...
BEs continued to digest the increasing headwinds and were well offered throughout the session while the broader risk tone ultimately followed suit.
EURi: TIPS drive direction, positioning drives iotas
TIPS, the swap roll and fast money positioning in iotas were all seen driving euro inflation today.
USDi: BEs tumble further as Powell pivots again
Hawking lashes of the tongue by Fed Chair Powell only added further to today’s risk-off move that once again sent BEs lower.
EURi: Sellers absent, buyers return
"More buyers than sellers" chuckled an inflation veteran when asked why breakevens had started to rise again today.
EURi: Decent French auction followed by wave of fast mone...
A decent French linker auction was followed by fast money selling that left breakevens up to 5bps lower at the end of the day.
EURi: Gas bubble lifts curve, 5y5y near 2% again
Higher gas, electricity and oil prices lifted the inflation curve today. The move was led by the front end but 5y5y touched 2% again.
EURi: Flatter before French supply
Inflation dealers joined the growing chorus grumbling about dislocated and illiquid markets as the curve flattened a touch ahead of the AFT news.