http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/http://www.fxstreet.com/fundamental/http://mediaserver.fxstreet.com/images/fxstreet-provider-logo1-en.gif7http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-02-10.htmlMarkets: fixed income On Thursday, global core bonds continued to correct lower in a move that started after the stronger-than-expected US payrolls last Friday. The correction develops at a quite subdued pace and is modest in scope. Technically, the Bund now tests first important support, but that isn’t yet the case for the US Note future (see graphs next page). The trigger yesterday was the rumour on an agreement between the Troika and the Greek political parties, later on confirmed by Mr.Fri, 10 Feb 2012 08:43:00 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-02-10.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-02-09.htmlMarkets: fixed income On Wednesday, global core bonds had a tight sideways trading session, as had EUR/USD and more or less equities too, which were left with some very minor losses in the close. In the US, yields rose less than 1 bps across the curve with the 5-year the exception (+ 2 bps). Marginally higher losses in Germany where yields rose by 1.2 to 2.6 bps. The German Bobl and the US 10-year Note auctions were plain vanilla. They very temporary moved the overall market, but withoutThu, 09 Feb 2012 08:26:04 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-02-09.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-02-08.htmlMarkets: fixed income On Tuesday, Global core bonds sold off on signs that a Greek deal nears. It was the only important intra-day move global core bonds (and EUR/USD) made. Non-core EMU bonds did relatively well. It may show that investors are willing to put the Greek issue aside and are still more oriented towards embracing riskier assets. The price action might still be an after-result of the strong payrolls published last Friday that hit bond sentiment, just when US Treasuries and BundsWed, 08 Feb 2012 08:24:42 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-02-08.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-02-07.htmlMarkets: fixed income On Monday, in a low volume trading session devoid of major eco releases, a mild risk off sentiment reigned most of the time. This translated in modest gains for global core bonds and some minor losses for equities. The main reason for the risk-off sentiment was the ongoing uncertainty about the negotiations of the Greek second bailout package. The intra-day volatility was mainly related to rumours and small news items surrounding the Greek issue. German orders were a bitTue, 07 Feb 2012 08:04:50 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-02-07.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-02-06.htmlMarkets: fixed income On Friday, an unexpectedly strong US payrolls report hit global core bonds quite hard, while commodities and equities surged higher. The fortunes of the dollar were more mixed (see Fx section). Once the payrolls report was digested, the nonmanufacturing ISM also printed a lot stronger than expected, which led to additional bond selling and some extra equity and commodity buying. The US yield curve steepened sharply: while 2-year yields were little changed, 5-, 10- andMon, 06 Feb 2012 08:26:45 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-02-06.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-02-03.htmlMarkets: fixed income Ahead of the US payrolls report, to be released today, all markets took a breather yesterday. Equities ended slightly higher in Europe and narrowly mixed in the US. EUR/USD was marginally lower; intra-EMU spreads on the contrary narrowed sharply, but global core bonds ended the session near Wednesday’s closing levels. More detailed, US yields were marginally lower in the 2-to-10-year segment and up 1.1 bps at the 30-year maturity. German yields were flat to 2.7 bpsFri, 03 Feb 2012 08:31:23 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-02-03.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-02-02.htmlMarkets: fixed income On Wednesday, global core bonds took a step back following a 5-day rally that brought the Mar US T-Note future to a new high and yields at some German maturities towards new lows. So profit taking was in the air and one shouldn’t look too hard for a concrete trigger. Equities eked out nice gains, especially in Europe and non-German bond yield spreads versus German ones narrowed substantially. Of course, it was a risk-on session, but that wasn’t enough in the recent pastThu, 02 Feb 2012 08:20:25 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-02-02.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-02-01.htmlMarkets: fixed income Global core bonds had another constructive session on Tuesday and ended slightly (Germany) to moderately higher (US), despite equities recovering from intra-day weakness. In a daily perspective, the US curve bull flattened again, with yields flat to 6.1 bps lower. The 5-year yield reached a new record low (0.70%) while the 7-year matched the record low. The 10-year tests the 1.80% level, the lower boundary of the recent sideways range. The German curve changed in anWed, 01 Feb 2012 08:18:42 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-02-01.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-31.htmlMarkets: fixed income Global core bonds started the trading week on a strong footing, prolonging the rally that started on Wednesday when the FOMC delivered a very dovish message to the markets. While initially, the rally encompassed all asset classes, including equities, it is now more narrowly confined to global core bonds. Indeed, risk-off sentiment re-appeared, even if the US equities showed good resilience in recent sessions, limiting the losses. In a daily perspective, both the US andTue, 31 Jan 2012 08:21:34 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-31.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-30.htmlMarkets: fixed income On Friday, Global core bonds continued to eke out some albeit marginal (German) to modest gains in a rather thinly traded end-ofweek session. Various factors drove the price action intra-day, but none was really able to give the market firm direction. The T-Note future tested the cycle highs, but no break occurred (yet?). Intra-day, the Bund opened slightly higher, but turned down almost immediately, as equities climbed after a weak opening. The disconcertingly weak M3Mon, 30 Jan 2012 08:05:19 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-30.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-27.htmlMarkets: fixed income On Thursday, global core bonds saw good follow through buying on the FOMC’s very dovish stance. Recapitulating, the FOMC suggested rates will remain unchanged at least till the end of 2014 and chairman Bernanke did its utmost best to convey that the bar for another shot of quantitative easing is very low. They may even decide for such a programme without a noticeable worsening of economic data. In this context, global core bonds gained despite stronger equities (at leastFri, 27 Jan 2012 08:11:45 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-27.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-26.htmlMarkets: fixed income On Wednesday, global core bonds eked out some juicy gains following a sell-off earlier in the week. During the European session German bonds profited from a strong 30-year auction, but also from some renewed fears that Portugal would need a new bailout package (see below). The stronger IFO survey, while very positive news, couldn’t hold back German bonds. During the US session, besides a strong 5 year Note auction, it was the dovish FOMC meeting that pushed TreasuriesThu, 26 Jan 2012 08:59:11 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-26.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-25.htmlMarkets: fixed income On Tuesday, the sell-off in global core bonds stalled, as bonds had a sideways oriented session that left US bonds narrowly mixed and German ones slightly weaker into the close. Renewed uncertainty on the Greek PSI, after the euro group rejected the final offer of private creditors, didn’t affect markets for long. Equities would end the day little changed. The economic news was stronger than expected as both the EMU PMI’s and the US Richmond Fed survey were encouraging.Wed, 25 Jan 2012 08:15:32 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-25.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-24.htmlMarkets: fixed income On Monday, most Asian markets were closed in observance of the Lunar New Year holidays. From the start of the European session, global core bonds were hit by more follow through selling in a session filled with rumours and comments on the Greek PSI deal and on the possibility that the EFSF and ESM might run together. The eco calendar was dull with only European Commission’s consumer confidence. The January figure was in line with expectation and ignored. The sellingTue, 24 Jan 2012 08:17:16 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-24.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-23.htmlMarkets: fixed income On Friday, global core bonds were hit by more follow through selling in a session devoid of important economic data or key event news. Global core bonds had tested key resistance levels earlier in the week, but the inability to break through and the return of risk appetite were enough to trigger a selling wave. Riskier markets stabilized, but that wasn’t enough to support both German and US bonds. In a daily perspective, both the German and US yield curves shifted higherMon, 23 Jan 2012 08:11:52 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-23.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-20.v02.htmlMarkets: fixed income After Bunds, and to a lesser extent US Treasuries, held up quite well in recent sessions, the developing risk-on climate finally caused some more pronounced global core bond selling on Thursday. Technical considerations certainly played a role, as global had been lingering around key resistance for some time. Fading hopes about another up-leg triggered profit taking. In a daily perspective, both the US and the German yield curve steepened, the former registered yieldFri, 20 Jan 2012 08:26:13 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-20.v02.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-19.htmlMarkets: fixed income On Wednesday, German bonds had again a mostly sideways oriented session until later in the US session, when equities rallied quite strongly to new recovery highs in a move that may turn out to be technically important. US Treasuries fell prey to some profit taking after a nice run of late and fell moderately. In a daily perspective the US curve bear steepened with yield changes from 0.9 to 5.8 bps. German yields rose only modestly by 0.7 to 1.8 bps, the 10-year evenThu, 19 Jan 2012 08:26:49 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-19.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-18.htmlMarkets: fixed income On Tuesday, global core bonds ended the session again little changed, especially in the US. The session showed two faces . In the morning, risk appetite returned putting the Bund under pressure. The various T-bill auctions (Spain, Belgium, EFSF and Greece) went well, while the sharp rise in German ZEW economic sentiment suggested that the steep downturn of growth might have stopped. The Bund and the US T-Note future bottomed in early US dealings, when aWed, 18 Jan 2012 08:12:52 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-18.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-17.htmlMarkets: fixed income On Monday, US markets were closed and the calendar was razor thin. This resulted in very low trading volumes in the Bund (294 million contracts) and European bond markets. In this climate, the Bund traded listless in a tight trading range near Friday’s record high levels. This level wasn’t tested anymore, but maybe more importantly, there was no serious attempt to take profit either, despite equities doing quite well. However, recently, core bonds showed good resilienceTue, 17 Jan 2012 08:10:34 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-17.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-16.htmlMarkets: fixed income On Friday, global core bonds had a strong run, as risk aversion became again the overriding trading theme after rumours about an imminent downgrade by S&P of several EMU countries spooked investors. After closure of the market, S&P indeed downgraded several EMU counties. The most eye-catching downgrades were those of France and Austria that lost their AAA rating and the double notch downgrade of Italy, Spain, Portugal and Cyprus. The latter two into junkMon, 16 Jan 2012 08:49:35 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-16.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-13.htmlMarkets: fixed income Yesterday, markets had to cope with four potential market movers, notably the Spanish bond auction, the ECB/BOE meetings, the US retail sales and the US 30- year auction. All four releases were interesting, but they were unable to give global core bonds and equity markets firm and lasting direction. US and German yields ended flat to 2 basis points higher across the curve, while the main European and US equity indices ended slightly higher to nearly flat. Italian equitiesFri, 13 Jan 2012 08:16:10 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-13.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-12.htmlMarkets: fixed income On Wednesday, global core bonds had a strong run, as riskier markets (equities, commodities) took a breather following good gains on Tuesday. It seems that the following pattern is playing out. If risk appetite in markets is strong, global core bonds cede very little ground, but when riskier markets take a breather (or decline) global core bonds perform strongly. Interestingly, the Bund eked out its gains while non-core bonds saw their yield spread narrow, especially atThu, 12 Jan 2012 08:19:47 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-12.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-11.htmlMarkets: fixed income On Tuesday, markets turned into risk-appetite mode, but the global bonds held up very well, supported by signs that monetary policy will remain ultra-easy and may be eased even further. Equities (materials and banks leading), commodities and non-core EMU bonds gained, but the euro could only stabilize. In yield terms, US Treasuries closed less than 1 bps from the previous close, while German bonds added 2.5 to 5.3 bps, the belly of the curve underperforming the wings. TheWed, 11 Jan 2012 08:15:24 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-11.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-10.htmlMarkets: fixed income On Monday, markets had a calm and uninspiring trading session, as no important eco data were released and the news flow was thin too. Global core bonds ended the session barely changed, as investors preferred to stay on the sidelines waiting on the market reaction on fresh bond supply and more US eco data. This was also reflected in low traded volumes that were traded in both the Bund and T-Note future. So the intra-day gyrations in the bond and other markets were mostlyTue, 10 Jan 2012 08:09:40 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-10.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-09.htmlMarkets: fixed income On Friday, global core bonds eked out some modest gains, despite a better-than-expected December payrolls report. The initial market reaction on the payrolls report was tepid, with bonds losing only slightly ground, while equity and dollar gains were disappointingly modest. In the absence of no follow up selling, global bonds fast found a bottom and turned North. Subsequent dovish comments of NY Fed Dudley, who seems to favour more accommodation, helped Treasuries eke outMon, 09 Jan 2012 08:08:32 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-09.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-06.htmlMarkets: fixed income On Thursday, global core bonds split ways. While German bonds rallied following a weak opening on euro debt worries (see lower), US Treasuries ended little changed, as the European risk averse sentiment was offset by a strong ADP report. This suggests that the US economy continues to recover as investors await today’s payrolls’ report. In yield terms, the German curve bull flattened with yields down between 0.6 and 6.6 bps. In the US, the curve bear steepened with smallFri, 06 Jan 2012 08:15:12 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-06.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-05.htmlMarkets: fixed income On Wednesday, global core bonds closed again lower, but the losses were minor and insignificant from a longer term perspective. German yields fell marginally at the short end, but closed 2 to 2.5 bps in the 2- to-30-year sector. US yields were flat to 4.6 bps higher; the curve steepening may still have been influenced by the FOMC Minutes that show the Fed governors will start to make their views on future rates public. Markets expect that these “forecasts” will show ratesThu, 05 Jan 2012 08:42:45 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-05.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-04.htmlMarkets: fixed income The Bund started the, low volume, session on a weak footing, as a stronger Chinese PMI bolstered risk appetite in Asian equity markets, which were mostly closed on Monday. However a bottom was found soon and as equities started losing their gains, the Bund gradually erased the opening losses. The German labour market report was very strong, but didn’t stop the up-move. The strong German labour market is mixed news: it is fine for Germany, but the absence of some feelingWed, 04 Jan 2012 08:22:40 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-04.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-03.htmlMarkets: Fixed Income Yesterday, most markets besides the EMU were still closed following New Year festivities. This reflected in very thin trading conditions. In case of the Bund, that means less than 100 000 contracts were traded. Core bonds, especially German ones, rallied almost uninterruptedly in December and reached new historical lows in yield terms for the 2, 5 and 30-year sector of the curve. However, they started the New Year on a somewhat weaker footing. In the overall markets,Tue, 03 Jan 2012 08:07:19 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2012-01-03.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2011-12-16.htmlSunrise Headlines US Equities ended a three-day losing streak on Thursday supported by strong economic data. The S&P ended the session 0.3% higher led by utilities. This morning, most Asian shares trade in positive territory, led by Chinese ones on speculation the government will loose monetary policy. Rating agency Fitch downgraded yesterday seven large banks based in Europe and the US by one notch, saying the banks face challenges resulting from both economic developments as well as aFri, 16 Dec 2011 07:38:47 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2011-12-16.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2011-12-15.htmlMarkets: Fixed Income On Wednesday, global core bonds continued their surge higher. Until the European noon, nothing noteworthy happened but from then on, a series of small risk averse messages triggered a rally in core bonds. However, we must once again add that thin end-of-year markets lead to exaggerated moves. First of all, the results of the ECB’s second one-week dollar lending operation since the coordinated central bank action (reduced rate; now OIS + 50 bps) showed that banks tripledThu, 15 Dec 2011 08:16:33 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2011-12-15.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2011-12-14.htmlMarkets: Fixed Income On Tuesday, global core bonds ended mixed. The German Bund Future closed nearly unchanged whereas the Mar US Note Future profited after the European bell from a very strong 10-year Note auction. Intraday, core bonds traded in narrow ranges. In a dull, low volume trading session, the German bund was heading south in the European afternoon but when officials said that German Chancellor Merkel refused an increased ESM, the bund moved back to opening levels. At the EU Summit,Wed, 14 Dec 2011 08:00:22 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2011-12-14.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2011-12-13.htmlMarkets: Fixed Income In thinly traded markets, global core bonds were in favour from the opening bell until the close, thereby reversing most of Friday’s losses. The risk averse sentiment was sparked by the big 3 rating agencies, who put investors with both feet back on the ground by giving their downbeat assessment of Friday’s EU Summit. At the end of the session, the German yield curve bull steepened with 2-yr/5-yr/10-yr and 30-yr yields respectively 6.8, 10.3, 12.8 and 14.6 bps lower. InTue, 13 Dec 2011 08:09:45 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2011-12-13.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2011-12-12.htmlMarkets: Fixed Income On Friday, global core bonds reversed Thursday’s gains and ended, especially the German Bund, sharply lower. The EU Summit concluded early Friday morning and the deal reached boosted equities and weighed on global core bonds. Beefing up the IMF lending capacity (confirmation expected before next Monday), agreeing on the fiscal compact and bringing forward the introduction of the ESM restored investors’ confidence, at least for now. Rumours about the creation of a $300BMon, 12 Dec 2011 08:11:13 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2011-12-12.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2011-12-09.htmlMarkets: Fixed Income On Thursday, global core bonds ended with good gains, as the ECB disappointed markets by stating unequivocal that they don’t see an enlarged role for the ECB in fighting contagion in the sovereign bond markets (see lower). Initially the riskier markets had favourably reacted on the (widely expected) rate cut and the (bolder-than-expected) liquidity measures. In the core bond markets, Bunds and US Treasuries initially dipped lower (on the rate cut and the liquidityFri, 09 Dec 2011 07:41:01 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2011-12-09.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2011-12-08.htmlOn Wednesday, global core bonds ended with good gains. Overall, risk was off yesterday, the euro and equities lower; spread widenined, as investors got cold feet ahead of the moment of truth. The German bund and the March Note Future got a first shoot higher after a strong German Bobl auction. Around the same time, an unnamed German government official spooked investors’ minds by being pessimistic about the upcoming summit. While it is unclear to us why markets had to react on the man’sThu, 08 Dec 2011 08:10:36 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2011-12-08.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2011-12-07.htmlMarkets: Fixed Income On Tuesday, global core bonds traded listless in ranges, as investors are waiting for the EU Summit that starts tomorrow. There were a number of news items that affected bonds intra-day (see below). The German bonds closed flat to slightly lower with the exception of the Bobl that underperformed ahead of today’s auction. US bonds ended flat to lower, yields nearly flat in the 2-to-5- year sector and up 5 to 7 bps further out. Intra-day, the S&P action to put 15 EMUWed, 07 Dec 2011 08:04:14 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2011-12-07.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2011-12-06.htmlMarkets: Fixed Income On Monday, global core bonds were under moderate downward pressure at the European start as risk appetite, linked to hopes that EU leaders would come up with a credible response to the debt crisis, prevailed. The Italian austerity package, made public on Sunday, was a new element that drove non-core yield spreads to Germany sharply lower. In late US trading, the rumour (followed by the announcement) that S&P put 15 EMU counties, including all AAA countries, on reviewTue, 06 Dec 2011 08:37:53 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2011-12-06.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2011-12-05.htmlMarkets: Fixed Income On Friday, core global bonds were in a wait-and-see mode ahead of the US payrolls figure, while non-core EMU bonds continued to rally driving yield spreads versus Germany lower. However, it didn’t affect the Bund much. The payrolls were all in all close to expectations, besides the surprise, but unsustainable drop in the unemployment rate. The US economy is generating jobs, but too few to really cut unemployment seriously. Global bonds spiked lower on the release (due toMon, 05 Dec 2011 08:43:27 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2011-12-05.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2011-12-02.htmlMarkets: Fixed Income On Thursday, US and German bonds continued walking their own path with the striking difference in the economic outlook and positioning ahead of the EU Summit the most important drivers. Indeed, while the EMU PMI showed a grim outlook with all national PMI’s now below the 50 boom bust level, the US ISM rose to a moderate but rather comfortable 52.7, confirming the batch of better eco data that were published in the past month. However, US Treasuries recouped most of theFri, 02 Dec 2011 08:07:09 GMThttp://www.fxstreet.com/fundamental/analysis-reports/piet.lammens@kbc.be (KBC Bank)http://www.fxstreet.com/fundamental/analysis-reports/sunrise-market-commentary/2011-12-02.html