BONDS: Underpinned Following French CPI & Risk-Off Trade In Asia

Thedeen continues to strike a relatively cautious tone at the Riksbank press conference.

• He has repeatedly stressed the uncertainty of the December rate path, and in doing so did not provide a view on whether the path has upside or downside risks.
• He notes that more information will be available in March, when the next projection will be put forward.
• This caution may be factoring into SEK strength against the EUR over the last 15/20 minutes, but as noted above, the single currency remains under pressure more broadly against the G10.
• Initial support in EURSEK is the Jan 22 low at 11.4389. 

Delivering a speech on growth, Chancellor of the Exchequer Rachel Reeves says "Productive capacity of the UK has become far too weak." Reeves: "The solution is government systematically removing barriers...The strategy that I have consistently set out is to drive the supply side of the economy."

• Reeves says her growth strategy has three prongs: Stability, Reform and investment
• Reeves acknowledges her increase in National Insurance on business has consequences on business and beyond- 'I accept there are costs to responsibly. But the costs of irresponsibility are far higher. Those who opposed my Budget know that too'
• On trade and international relations
  • Reeves: "We will work with the US to deepen our economic relationship in the months and years ahead."
  • Reeves: "We will prioritise proposals with the EU that are consistent with our manifesto."
  • Reeves: "The business and trade minister will travel to India to restart talks on a new trade deal.
• Reeves: "We will protect the important role of pensions in the gilt market while giving additional flexibility." Says that after talking with regulators, an action plan will be published in March that seeks to aid being more agile to help businesses.