Euro area sovereign short-term yields fell, as CPI numbers unveiled a cooler-than-expected inflation in June (2.8% YoY vs 3% expected), while long-term ones rose, slightly widening peripheral spreads. US Treasuries closed flat on a choppy session, with the manufacturing ISM coming in line with expectations.
In currency markets, the inflation surprise weighed on the euro, which depreciated against major currencies as expectations for another rate cut from the ECB this year decreased. Equity markets fell on both sides of the Atlantic, correcting the movements of the past session, driven by losses in the technology sector. Asian markets, however, managed to post gains.