Daily Flows
- It has been a busy start to the financial year, with stand out levels of 5.40% for 5 years, 5.35% for 2 years and 5.45% for 1 year term deposits.
- The NCD margin has cooled slightly. It seems the going rate is now at +50 for 3 months in the BBB space.
- In the fixed income space, market participants have looked to the fixed UBS (A+) bond maturing 30/07/25 where YTM is trading above 5.06%.
Labour Landslide In The UK
- In the UK, it looks like Labour will win in a landslide with the party on course to win 410 of the 650 seats in the House of Commons and Conservatives retaining 131.
- It is hard to say how the change of government will impact financial markets. So far there has been minimal angst with Euro stocks and bonds remaining steady.
- In France, the uncertainty going into the second round of elections has seen 10-year French government bonds rise slightly.
- With potential changes of government, markets have been travelling side ways.
- It may take until after the U.S. election before we see sentiment run away.