Market: Bond begins in 2016 on a very positive note – ABC Bourse

(CercleFinance.com) – A motion ‘flight to quality’ has enabled bond markets to start 2016 on a high note but saw the extremely tense market environment, it would be unwise to rejoice.

The sovereign debt denominated in Euro relax on average basic -5Pts, T-Bonds are largely US as well with basic to -6Pts 2.21% against 2.27% Thursday (when the VIX jumped 24% to 22.5 and seems about to burst a decisive technical ceiling).

Besides the shot stock firedamp benchmark US (ISM survey of purchasing managers) emerged down to 48.2 against 48.6 in November, showing that the assumptions for growth by the Fed are probably too optimistic

All market troubles come from another drop index ‘PMI manufacturing’ (compiled by Caixin / Markit), the Chinese purchasing managers who stood at 48.2 -against 48.9 prévus- after 48.6 in November: this is the tenth consecutive month of decline … and what alarm the markets is that the deterioration has accelerated year-end

Confirming the risk of contagion of the Chinese syndrome to other international stock exchanges, the Tokyo Stock Exchange signed his worst start of the 21st century with the Nikkei index down 3.1%: symmetrically, the ’10 years’ Japanese relaxes -1Pt base to establish a new record for nine months to 0.26%.

The script could have been much different if China had not paralyzed the markets with a stock market crash halted by the suspension automatic transactions because of a dip -7% of CSI300 index.

Indeed, intra-Eurozone economic outlook is smiling with the PMI overall Markit which rose from 53.1 to 53.2, supported by the French PMI which rose to 50.6 51.4 (thanks to the French automobile market that has signed an increase of 12.5% ​​in December, bringing to 6.8% increase in its raw data on the full year 2015).

England disappoint however with a manufacturing PMI unexpected decline in December: the ‘Gilts’ relax spectacularly, basic -8,5Pts to 1.875%

This is higher than the -6Pts Bund (to 0.565%) and OAT (to 0.9330%) or the Italian BTP -4Pts (1.60%).

Only ‘bonos’ Spaniards occasionally supported -8Pts compared to 1.70% prior to finish by 1.745%.

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