UniCredit: Fixed Income View

Quotes from Unicredit

• Inflation expectations in the euro area reached multi-week highs across all maturities, although momentum is slowing and we think directional movements will now largely depend on future oil-price and exchange-rate momentum.
• Overall, it appears unlikely that services PMIs will be compelling enough to fuel much price action in EGBs prior to the ECB meeting.
• The spillover from the US is also expected to remain moderate for the time being. In USTs, pressure is likely to continue due to upcoming labor market releases.
• In this regard, we do not refer solely to Friday's labor market report but also to today's ADP data as well as next Monday's JOLT and NFIC releases. Finally, Greece sells EUR 875mn of 6M bills today.