Bond yields soar (well, go up a bit)
- Bonds in Europe exhibited some excitement yesterday with yields soaring (French 10 year yields now stand over 1% for instance). The cause is unlikely to be optimism over Greece (peripheral yields also rose) and instead may be economics reasserting its rightful dominance as Euro inflation keeps ticking higher.
- The ECB press conference may therefore be somewhat more interesting than normal today. There is the ever present issue of the Greco-German crisis as well, inevitably. The Greek Prime Minister will be meeting with one of the many presidents of Europe today on that.
- Service sector sentiment data comes out from around the world, which is of some interest. The Fed's Beige Book of anecdotal economic evidence may be more relevant (and more reliable). The OECD publish its Economic Outlook – written by economists, so it should be revered, but unlikely to move markets.
- US trade data makes an appearance – the figures are nominal, and with pricing to market strategies increasingly dominant, are also subject to much debate. Australian GDP was stronger than expected, in part buoyed by some unexpected resilience in the (real) export numbers.