European Rates and Economics Daily

RBC provides a daily update on European rates, noting a surprise downside in UK CPI to 2.8% and a strong Japanese 20-year bond auction. The report also highlights upcoming Euro area inflation data and BoE testimonies.

Key Takeaways

• 1.UK CPI inflation for April surprised to the downside at 2.8% y/y, coming in below the consensus of 3.0%.
• 2.Japan's 20-year JGB auction was exceptionally strong with a 4.01x bid-to-cover, providing relief to global bond markets despite yields hitting a 30-year high.
• 3.UK Chancellor Reeves is exploring voluntary food price freezes at major supermarkets in exchange for regulatory relief.

Table of Contents

• Overnight news
• Data and events
• Exhibit A: RBC growth and inflation forecasts
• Exhibit B: RBC yield forecasts
• RBC RV Quadrant
• Sales Literature and Market Commentary Disclaimer
• Disclaimer for Central Bank A.I. Sight™
• Disclaimer for OTC Derivatives
• Sales Note Disclosures Under the Market Abuse Regime

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