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Italy’s two-year sovereign bond yield fell to 1.69 percent yesterday, the lowest in eight weeks, after Enrico Letta won a confidence vote in parliament, avoiding the risk of another election. Letta was supported by 235 senators while 70 opposed him during yesterday’s vote. Former Premier Silvio Berlusconi backtracked on a pledge to bring down the government amid signs [...]
Currency traders should be paying more attention to the middle and the long end of the U.S. Treasury curve than the short end. To continue reading click here
U.K. financial-services firms paid an “unusually high” amount of bonuses in April, the ONS says, as the top rate of income tax was cut that month to 45 percent from 50 percent. Bonus payments in finance were 1.3 billion pounds in April compared with 600 million pounds a year earlier. All bonuses totaled 38.6 billion pounds between 2012 [...]
NEWS: Angela Merkel warned against the perils of excessive debt. India increased efforts to stem the rupee’s plunge and stop capital outflows. Egypt’s security forces broke up sit-ins by Islamist protesters, sparking violence that left hundreds dead. To read more, click here.
NEWS: Germany expects to cut planned 2014 bond sales. U.K. unemployment will hit Mark Carney’s 7 percent threshold faster than the BOE forecasts, a survey shows. The RICS U.K. house-price gauge rose to the highest in almost seven years in July. To read more, click here.
NEWS: Japan’s economy slowed more than forecast last quarter. The SNB will abolish its franc cap once it starts raising rates, Vice President Jean-Pierre Danthine said. Job vacancies at London’s financial-services companies fell by more than a third last month. To read more, click here.
BOE policy makers held three votes for the first time at their meeting this month. German chancellor candidate Peer Steinbrueck criticized Angela Merkel for misleading voters over the true cost of the debt crisis. Japan’s national debt exceeded 1 quadrillion yen (1,000 trillion yen) for the first time. To read more, click here.
NEWS: The Bank of Japan refrained from adding to stimulus. Gilt yields rose to the highest in more than a month after BOE Governor Mark Carney pushed to restrain expectations of an increase in interest rates. (See page 3.) Emerging-market currencies are trailing their peers in advanced economies by the most since 2009. To read more, click here.
WHAT TO WATCH: BOE publishes quarterly inflation report. Mark Carney press conference on forward guidance. 10.30 a.m. (See page 2.) German industrial output may have risen 0.3 percent in June from May, a survey shows. 11 a.m. Silvio Berlusconi’s Senate membership to be questioned by lawmaker committee. 7 p.m. To read more, click here.