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Daiwa Comments on Thursday's Germany Bunds, U.K. Gilts

BY MT Newswires | ECONOMIC | 12/04/25 12:27 PM EST

12:27 PM EST, 12/04/2025 (MT Newswires) -- German Bunds followed the global trend lower on Thursday, even after retail-sales figures suggested a soft start to household spending in Q4, said Daiwa Capital Markets.

Friday will bring an updated estimate of eurozone gross domestic product growth in Q3. After the tariff-related slowdown in Q2, or 0.1% quarter over quarter, the preliminary estimate reported a modest pickup in eurozone economic growth last quarter, or 0.2% quarter over quarter.

The accompanying expenditure breakdown of eurozone GDP, to be published for the first time, will likely suggest that private consumption growth was subdued, with higher public expenditure required to offset, stated Daiwa. However, fixed investment and goods exports likely made a modestly positive contribution after contracting in Q2, not least reflecting another bumper month for Irish exports to the United States in September.

Looking ahead, national releases will provide insight into developments in manufacturing sector activity at the start of Q4, with German factory orders and French and Spanish industrial production data for October due, added the bank.

Gilts bucked the trend on Thursday to make gains across the curve after the United Kingdom construction PMI slumped to the lowest level since the first pandemic lockdown and the global financial crisis before that, according to Daiwa.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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