Sovereign debt markets were mixed. Euro area yields edged lower and peripheral risk premia slightly narrowed, despite hawkish remarks from ECB’s Kazimir suggesting he doesn’t expect to lower rates in September. Conversely, U.S. Treasury yields slightly rose ahead of the Fed’s meeting this week, in which the FOMC is expected to hold rates steady.
In commodities markets, oil prices rose +2%, with the barrel of Brent reaching $70 for the first time in two weeks, after President Trump announced he would shorten the deadline for Russia to end its war in Ukraine or face sanctions.
Today, Spain’s 2Q preliminary GDP figures will be released (consensus expects +0.6% qoq).