Bond yields higher

Sterling is holding onto its recent gains, trading at around 89.5p and $1.2350 against the euro and dollar respectively, after Parliament last night again refused to grant Prime Johnson Johnson a mid-October general election, its last act before being suspended for a few weeks. The single currency, meanwhile, continues to trade in a narrow range against the dollar and is hovering around $1.1050 this morning

Ahead of the forthcoming ECB (this Thursday) the Fed (next week) meetings,  bond yields in the core markets are moving up, which is perhaps not too surprising given the sizeable decline in yields we’ve seen over the past few weeks in anticipation that both central banks will ease policy to support economic growth. US 10-year yields are now back above 1.6%, while equivalent German yields have risen to under -0.60%

With the UK  Parliament now prorogued, Prime Minister Johnson says the Government “will press on with negotiating a deal, while preparing to leave without one.. I will go to that crucial summit in Brussels on Oct. 17, and…I will strive to get an agreement in the national interest.” (Let’s see)

The UK economy grew by 0.3% in July (from June) according to the monthly GDP estimate published yesterday, but over the three months to July recorded zero growth (from the three months to April) suggesting activity is just flat-lining amid heightened uncertainty

Data due today include the latest labour market report in the UK as well as job openings and small business optimism in the US