Main currency pairs steady

There was little change in the main currency pairs again yesterday. They continue to trade in relatively narrow ranges, with sterling hovering just above 85p against the euro and the single currency at around $1.0650 against the dollar

US bond yields rose as equity markets chalked up decent gains, but the 6bps increase in 10-year yields just reversed Wednesday’s fall. Perhaps Donald Trump’s promise to outline a ‘phenomenal’ and ‘comprehensive’ tax plan over the next two or three weeks will help to give the bond market clearer direction

Spanish and Italian bond yield spreads over Germany tightened in further yesterday, as did French spreads

The number of new jobless claimants in the US fell last week to a near record low, suggesting the labour market is still performing well with solid employment growth

Data due today include industrial production in the UK and consumer confidence in the US