Bond yields lower

Sterling is holding onto its gains against both the euro and the dollar to trade at around 85p and $1.25 respectively. The single currency is little changed against the dollar trading at just under $1.07

Bond yields in the US and Germany fell yesterday, with 10-year yields in the US closing  down around 6bps (revisiting their recent lows of 2.34% in the process) and equivalent German yields falling  by about 5bps

French bonds yields also finished lower on the day and spreads over Germany narrowed further, having widened out at the start of the week. There was also a narrowing of ‘peripheral’ spreads (e.g. Italy and Spain) over Germany

Bank of England MPC member Cunliffe says the ‘outlook for the UK economy…depends largely on how households and businesses react to Brexit and on the process that accompanies it’

MPs in the UK vote overwhelmingly (494 to 122) in favour of the government’s Brexit bill, which now moves to the House of Lords

Data light again today with jobless claims due in the US