Bloomberg Television Here, Anna Edwards, Bloomberg discussed on Bloomberg Daybreak Europe


Ad council Influential conversations from Bloomberg television Here's Anna Edwards Joining us now with the market's perspective Toronto dominion bank senior European rates strategist Who's a really good to speak to you We've been talking a little bit about what's been driving yields higher And it's interesting in the context of all the concern that all the things that could be holding us back all the things that could be worrying us around the omicron variant Maybe the market is looking through that But mark making the point to me earlier that the steeper curves that we're seeing I'm thinking here about treasuries but perhaps it applies in other places as well The steeper curves is not a sign of a huge amount of optimism It's about technicals It's about corporate issues and it's also about fear around inflation What do you put the higher yield environment down to it At the time environment is more like a seasonal driven where we see every year we started in the financial optimism and we have extreme high levels of supply coming across both that we are looking for at EDD or we are looking at corporate supply So that is definitely adding to the sleeping bias that we are seeing in curves across country And also given the fact that in December we did have Central Bank action addressing the end of the policy And I think raised our markets have started to reflect that And that's where you are seeing market reassessing new levels that people go Here more conversations like this one on Bloomberg television streaming live on Bloomberg dot com and on the Bluebird mobile app or check your local cable listings Okay Markets headlines and breaking news 24 hours a day at flu burn dot com the Bluebird business app simply but quick take this is a Bloomberg business flash From Bloomberg's European headquarters in London and Caroline hepar with this Bloomberg radio business flash So the markets are squarely focused on the FOMC minutes that showed officials want to start balance sheet runoff sooner than had been expected Overnight swaps markets now betting 80% on a 25 basis point interest rate rise in the U.S. in March three hikes now seen from the fed this year What does that done It has led to a sell off particularly in tech stocks but more broadly the S&P 500 Index slumped 1.9% of the clothes the biggest drop in more than a month and NASDAQ tumbled 3.1% and now futures are very much in the red dropping 2.1% for the U.S. stocks 50 futures so Europe really playing catch up with the Wall Street story S&P 500 evenly features currently down half of 1% U.S. benchmark yields are rising steadily but surely one spot 7 three three on the ten year are by two and a half basis points right now You have a bid for the dollar up by a tenth of 1% on the Bloomberg dollar spot.

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