Sold  Eur 1.625 bln of 13 wk T bills, cover 2.90, yield 4.645 (vs 4.68%)

Ex food and energy  0.4%m/m (as expected), 2.0% y/y (exp 1.7%)  

In recent trade. We’ve been to 1.2797, presently 1.2792.

Much better than forecast of -50.0, and giving the euro a boost towards  1.2800 Current conditions index 28.4 in Jan from 26.8 in Dec ECB liquidity, affordable refinancing may have led to the strong month improvement Asseessment gives reason for some cautious optimism points to stabilizzation of german economic activity in next 6 months  

Just pushed up to 1.0443 on some aggressive buying from  a major swiss bank, If we can get through the resistance towards  1.0450 it could well spark a  sharper move up through 1,0500 towards 1.0580 ….

Noted rating agencies said deficit cutting strategy goes in right direction Current reforms address deficit issues

Some talk going around of a potentially large GBP/JPY deal, after confirmation  that Sumitomo Mitsui Financial Group and  Sumitomo Corp are buying RBS’s aircraft leasing division for  £4.75bln GBP/JPY’s  around 117.80  (,midrange on the day)

Noted Fitch and Moody’s maintained France’s AAA rating Nobody doubts the quality of France’s debt Insists France can pay its debts Holders of French bonds will get all their investment back S&P downgraded suboptimal currency area, not Sarkozy govt We respected our commitments regarding cutting deficits in 2011 French economy has strong assets, including high [...]

Sold Eur 3.01  bln of Jan 2013 Letras, yield  2.049 % (vs 4.050  %), cover 3.55  (vs 3.14  ) Sold Eur 1.87  bln of  June 2013 Letras, yield 2.399  % (vs 4.226 %), cover 3.3  (vs 4.98 ) SDOverall pretty good auction with yields lower . EUR/USD holding steady and firm around 1.2770

–Dec CPI +0.4% m/m; +4.2% y/y vs Nov 4.8% y/y; in line with median –Dec core CPI +0.5% m/m; +3.0% y/y vs Nov 3.2% y/y; in line with median –Dec RPI +0.4% m/m; +4.8% y/y; Dec RPIX +0.4% m/m; +5.0% y/y LONDON (MNI) – Consumer price inflation fell sharply as expected in December, supporting the [...]

UK DATA: Dec CPI +0.4% m/m; +4.2% y/y vs Nov 4.8% yy;in line with median –Dec core CPI +0.5% m/m; +3.0% y/y vs Nov 3.2% y/y; in line with median –Dec RPI +0.4% m/m; +4.8% y/y; Dec RPIX +0.4% m/m; +5.0% y/y ———————————————————————— Consumer prices rose 0.4% on the month in December and were up [...]

In line with median forecasts. The y/y decline from +4.8% in November is the biggest slowdown since April 2009. ONS says slowdown driven by petrol, gas and clothing discounts. Has the price of petrol come down then?, buggered if I’ve noticed!!!

FRANKFURT (MNI) – The European Central Bank has no immediate plans for further interest rate cuts, ECB Governing Council member Ewald Nowotny said in an interview with the Wall Street Journal Deutschland on Tuesday. The ECB has taken “significant steps” both as regards liquidity provision and lowering borrowing costs, Nowotny said. “We now have a [...]

Middle Eastern names apparently took the baton initially, triggering the run up to 1.5388 highs. Eastern Europeans were then reportedly selling in the 1.5370′s . EUR/GBP’s been a drag on cable this morning with  some earlier M&A buying leading the charge higher to  0.8310. There’s  offers ahead up in the 0.8330′s,  and bids around 0.8280/90 [...]

FRANKFURT (MNI) – Fiscal consolidation for Greece must target the structural deficit rather than the overall deficit target to avoid the risk of the country falling deeper into recession, Greek Deputy Finance Minister Iannis Mourmouras said in the Financial Times. “The failure of austerity programmes in the Eurozone’s periphery can be attributed to this significant [...]

AFME is the Association of financial markets in Europe. FTT may push up to 75% of taxable fx deals outside EU FTT could reduce fx liquidity, volumes;  widen bid-ask spreads (that’s not good!!!)  

The break through the 200 day MA at 1.0410 earlier should now hold some support on any sell-offs, with  the market currently finding some headwinds ahead of tech resistance at 1.0445/50. A break here should see an accelerated leg up to around 1.0580 Some talk earlier of an Asian sovereign selling in the 1.0430′s and [...]

GFMS is a research consultancy. Gold to average $1,640/oz in first half of the year May test support near $1,550/oz in first quarter Gold nearing closing stages of decade-long bull run Economic, political backdrop still favours gold Re-emergence of US concerns could ‘fire up’ gold Dow Jones reporting.

PARIS (MNI) – The fate of the Greek economy depends primarily on the strategies politicians and economists come up with to overcome its many weakness, according to the president of the country’s chamber of commerce. Nicolas Vernicos, who also heads a group of maritime companies founded over a century ago, said the reform measures of [...]

EFSF never had problems selling our bonds