(CercleFinance.com) – Investors learned this morning of the annual inflation rate in the eurozone. This is estimated at 2.5% in June 2024, compared to 2.6% in May according to a quick estimate published by Eurostat, the statistical office of the European Union.
German inflation, published a little earlier, came out slightly above the consensus, while approaching the 2% target set by the ECB, giving operators hope for good surprises.
In the bond sector, the 10-year Bund is barely reacting (and continues to trade at around 2.610% (+basis point) while the French OAT is better oriented with -1 point at 3.3350%, i.e. a spread of around 72.5 points (10 less than it was 3 sessions ago).
No figures in the United States this Tuesday, attention was focused on the remarks of Jerome Powell, the head of the Fed, who is participating with Christine Lagarde, in the annual forum of the ECB in Sintra, Portugal (the European counterpart of the Jackson Hole meeting which is held each year at the end of August in the United States).
Powell reiterated that while inflation had made “some progress,” its decline should be allowed to continue in order to “give more confidence in the slowdown in price increases before we begin to ease monetary policy.”
The head of the FED confirms that he is torn between the fear of reducing rates too quickly and that of waiting too long.
The yield on the 10-year T-Bond eased by -2 points to 4.44% after having fluctuated weakly between 4.4600 and 4.4100%.
Despite the recent rise in yields from 4.25% on June 25 to 4.50% on Monday morning, investors believe there is a nearly 70% chance of a Fed rate cut in September.
