Fixed Income Market Roundup

US Treasury market was closed yesterday. Treasuries are opening slightly lower with 2-year and ten year yields at 4.71% and 4.77% respectively.

Following the weekends news from North Korea, the US market could see some safe haven flows on reopening after the Columbus Day holiday.
Overnight saw two Federal Reserve speakers reiterating that the inflation outlook still remains uncertain with further progress needed to keep it under control.

European government bonds opened up lower and remained in negative territory following release of German industrial production which showed a rise of 1.9% from July, its biggest gain for 3 years. Today sees release of industrial production in France and Italy whilst ECB President will address the European Parliament.

Following Fridays fall in the gilt market prices stabilised yesterday after release of producer prices which came in weaker than expected. After trading in a narrow range through most of the day virtually all maturities finished with small gains.

Tonight sees Bank of England governor King give a speech, which may indicate whether base rates will be rising in November.