Commerzbank rates strategist Hauke Siemssen said expected slowing UK inflation
should set the tone for bond markets this morning, while oil remains the
dominant driver. Ongoing US–Iran strikes and Houthi threats to Red Sea shipping
have lifted Brent crude back to $92/bbl, prompting a bearish market tone.
Siemssen said a decline in this morning’s UK inflation reading would likely
produce a milder market backdrop.