i bonds sembrano aver trovato il bottom. ci stava bene una entrata su s1 ma si vede ero troppo impegnato a scrivere cag@te
Euro debt-Yields rise as U.S. factory survey hits market
By Burton Frierson
LONDON, Oct 1 (Reuters) - Euro zone government bond yields rose on Friday after a key U.S. manufacturing survey gave a better-than-expected reading and raised expectations that next week's employment report could come in strong.
The main index in the Institute for Supply Management's manufacturing report slipped less than expected to 58.5 from August's 59.0 in August, while a rise in the employment component suggested the jobs market could sustain further U.S. rate hikes.
"The headline index continues to show that the U.S. economy should continue to expand at a robust pace," said Investec economist David Page.
"The big pick-up in the employment index has implications for the payrolls number next week. If we get a strong series of payrolls, the Fed will keep hiking rates by 25 basis points at each meeting and the market will turn on this."
At 1520 GMT, the two-year Schatz yield <EU2YT=RR> was up 2.1 basis points at 2.573 percent.
The 10-year Bund yield <EU10YT=RR> was up 2.9 basis points at 4.018 percent. Shortly after the ISM data, it rose to a two-week high of 4.036 percent.
The main ISM reading was the lowest since October, but remained firmly in expansion territory and is still not far below January's two-decade high of 63.6.
The employment component rose to 58.1 from 55.7 in August, raising expectations that next Friday could see a strong monthly U.S. employment report. The non-farms pay-roll report has played a key role in market interest rate expectations this year.
MIXED EUROPEAN DATA
The ISM data came after a similar euro zone survey of the manufacturing sector, which showed the slowest pace of expansion in seven months in September.
The Reuters euro zone manufacturing PMI main index recorded 53.1 in September, slightly below a median forecast and down from 53.9 in August.
However, markets largely brushed the PMI aside ahead of the ISM.
"The PMI data from the European countries wasn't particularly encouraging but to be honest at the moment we really just do have to drop our hats to the U.S. data while it does seem to be going through a period of improvement," said David Keeble, head of fixed income research at UBM in London.
Overall it was a mixed day for euro zone data.
The Italian and German components of the PMI number came in weaker while the French index was in line with forecasts.
German August retail sales also offered mixed signals. Monthly sales showed an unexpected rise but the annual figure was a 0.9 percent decline against a forecast 0.7 percent rise.
The bond market was also undermined by the euro, which retreated from Thursday's two-month peaks above $1.24 <EUR=>. Moves in the single currency often impact euro-denominated debt.
Oil prices <CLc1> were holding below recent peaks. This week's record peaks above $50 a barrel had supported debt prices on a view that high oil prices could dampen economic growth.
The December Bund future <FGBLZ4> fell 24 ticks to 115.40, having hit a 10-day low of 115.23 in the wake of the ISM report.
The December Euribor futures contract <FEIZ4>, a gauge of short-term euro zone interest rate expectations, was steady at 97.775, implying three-month money rates at 2.225 percent. The European Central Bank's key rate is at 2.0 percent.
The 10-year yield spread between Bunds and Treasuries held steady on the day so that T-Notes yielded 20 basis points more than German debt. The euro swap spread was steady at 12 basis points. ((Reporting by Burton Frierson, editing by Dayan Candappa;
[email protected]; Reuters Messaging:
[email protected]; +44 207 542 6284))
--------------MARKET SNAPSHOT AT 1528 GMT ------------------
Futures continuous contract basis
FUTURES CASH YIELD
THREE MONTH EURO 97.785 (+0.010) 2.040 (+0.004)
TWO-YEAR SCHATZ 105.89 (-0.03) 2.563 (+0.011)
10-YEAR BUND 115.38 (-0.27) 4.021 (+0.031)
30-YEAR BUND 4.669 (+0.032)
Current levels versus prior European close
For relative performance tables see below
-----------------------------------------------------------
LAST PREVIOUS
10-YEAR US/BUND SPREAD 20 20
10-YEAR UK/BUND SPREAD 91 90
10-YEAR BTP/BUND SPREAD 17 17
10-YEAR OAT/BUND SPREAD 6 6
10-YEAR AUSTRIA/BUND SPREAD 5 5
10-YEAR BONO/BUND SPREAD 2 2
10-YEAR EURO SWAP SPREAD 12 12
