Global Daily: Glimmers of hope or disappointment

US treasuries are broadly moving sideways, after falling earlier in the week, as traders are awaiting today’s jobs data. UK government bonds, however, continue to decline. While it’s easy to attribute the recent weakness in Gilts solely to domestic policy dynamics, the reality is more nuanced, our UK strategist Stefan Koopman explains. Meanwhile cable is clearly vulnerable given USD strength, but weakness in the currency block is likely to work as a floor below GBPEUR. This week offered glimmers of hope for those searching for bright spots, but overall the picture of a struggling Eurozone economy hasn’t changed, in our view.