BBG: Gilts Underform Bunds, Treasuries; Equities Steady
Bloomberg’s macro squawk group update a moment ago (537a),
(Bloomberg) -- Most European equities are little changed in notably subdued volatility. IBEX outperforms, rising 0.4%; FTSE MIB lags. Tech and travel are the best performing sectors, utilities slip over 1%. S&P futures are down 0.2%, Nasdaq futures off 0.3%. Gilts underperform bunds and USTs, cheapening 3-4bps in a bear steepening move. Bunds and USTs bear flatten slightly. Much of the semi-core and peripheral space tightens to core; Italy underperforms, widening 1.5bps at the 10y point. In FX, Bloomberg dollar index dips back into the red after failing to make progress through Tuesday’s highs in late Asia. NOK, GBP and NZD top the G-10 scoreboard. Cable snaps back on to a 1.33 handle, euro climbs near 1.13. Turkish lira holds a tight range near 12.51/USD. Crude futures hold in the green. WTI trades up 0.5% near $71.50, Brent near $74.25. Spot gold is little changed near $1,788/oz. Most base metals are in the green: LME zinc and aluminum are up over 2%, tin lags. KEY HEADLINES:
ECB’s Schnabel sees upside risks to inflation outlook: Le Monde
ECB can in ‘extreme’ case raise rates in 2022, Holzmann says
Italy has fulfilled all 2021 EU recovery fund targets: Draghi
Biden team plans 4 million doses of Covid treatments in January
Erdogan says Turkey program to stabilize FX rates succeeded
API inventories according to people familiar: Crude -3.7m, Cushing +1.3m, Gasoline +3.7m, Distillates -0.8m
Not much there, there IMO and end of year volumeless volatility and position squaring (rebalancing) into / through years - end likely to be source of most fun-ter-taining narratives.