On Monday, 13 September, the market of European government bonds dominated "bearish" sentiment. Investors are willing to get rid of the "protective" assets on fears the weakening global economy. The reason for this attitude among the players was just a few. First, the optimistic news came from Asia: the August industrial production growth in China in annual terms amounted to 13,9%, exceeding expectations and experts, and the previous month. Then the activity of sellers of European state bonds stimulated European Commission report, which stated that due to the growth of consumption, the eurozone economy is recovering faster than predicted earlier. The European Commission has revised upward its previous forecast of GDP growth. Instead of the expected growth in the spring of euro-zone economy and the EU in the current year to 0,9% and 1% respectively, the new forecast implies a rise in economic activity for the year the euro zone to 1.7% and the EU - 1,8%. Economists have raised the European Commission and the forecast of economic growth in Germany this year - from 1,2% to 3,4%. Nevertheless, the expectations of slowing economic growth in the euro area, particularly in the second half, no one has repealed. The experts there will be no repeat of the regional economy sliding into recession.
The fall of investor interest in debt obligations of European governments in the secondary market contributed significantly to the auctions in the primary market. Its debt obligations on Monday implemented the German and Italian governments. In total, the auction was sold 6-month Bunds in Germany for 4.58 billion euros, and Italian bonds with a term expiration in 2015. and 2040g. - For 5.5 billion euros.
Additional impetus to sales, in particular, the French government bonds was the message of the national statistical offices that the current account deficit (Current Account) France fell in July from 2.7 billion to 2.2 billion euros.
Thus, the fourth consecutive day, investors get rid of the "protective" assets to the weakening of concerns about slowing global growth. Every once a signal that a slowing global economy may not be as severe as predicted by experts before reinforces investors' appetite for risk, spurred buying stocks and selling government bonds. Apparently, this behavior of market participants will occur in the coming weeks, until not released new data on economic growth in the III quarter - then it becomes clear what could be the real extent of the economic downturn, at least up to the current year.
The nature of the first trading session began the week as a whole has not undergone significant changes - active sales of virtually all the most liquid debt of Germany, France and Britain continued throughout the day. However, for the last hour of the session, some British Gilts still managed to reverse the downward trend and end your day price growth. Following a two-year yield trades Bunds in Germany remained almost unchanged, but a decade - up by 2 bp The spread between them has increased from 166 to 168 bp
