Daily Flows & Insights – Labour Landslide In The UK

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.
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Curve Team
Jack Pedersen