European bond markets continue to deteriorate, with losses widening in the late afternoon.

Ceiling levels dating back to early December 2023 have clearly been breached, raising the risk of yields subsequently rising to levels corresponding to the peaks tested around November 24 (such as 3.25% for our OATs, for example).
Bunds are down +3.5pts to 2.465%, OATs +4pts to 2.94%, Italian BTPs 'only' +2pts to 3.915%.
Across the Channel, the 'Gilts' are going through the roof, with yields soaring by +7.2Pts to 4.235%, their worst score since 11/27/2023.

Stock markets are stubbornly refusing to correct ('risk-on'), with a new all-time high in Frankfurt... and stress indicators are at record lows on Wall Street (VIX = 'full risk-on').

Across the Atlantic, T-Bonds are proving resilient, with a very modest +1Pt deterioration on the '10-yr' to 4.305% and the '30-yr' to 4.428%.

Today's mediocre US figures are not helping Treasuries to ease.
US household sentiment deteriorated sharply in February (from 110.9 to 106.7 in monthly terms vs. 114.8 in the 1st estimate), according to the Conference Board's monthly survey published on Tuesday.

For Dana Peterson, the Conference Board's chief economist, this sudden deterioration reflects the persistent uncertainty surrounding the US economy.
The sub-index measuring respondents' judgment of their current situation fell to 147.2 from 154.9 the previous month, while the sub-index measuring their expectations dropped to 79.8 from 81.5 in January.

Durable goods orders fell by 6.1% in January compared with December, following a sequential decline of 0.3% in December 2023, with the consensus forecast at -5%.

Excluding the usually erratic transportation sector, where orders plunged by 16.2% in January, US durable goods orders fell by just 0.3% last month.

Traders are now eagerly awaiting Thursday's release of the PCE index of consumer spending (excluding food and energy) in the United States, the Federal Reserve's preferred indicator for gauging inflation.



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