A busy but mixed afternoon session

A mixed busy session for EGBs, as they take their cue from the US data release.

• Bund reversed all losses and the curve went from Bear steeper this morning to bull flatter, post US CPI miss.
• Some perplexing moves across assets.
• TY rallies with Equities and USD sell off.
• A reason to explain the price action, is that the inflation miss reduces the risk of near term hikes and as such curves moved flatter.
• And the big US weekly earning beat kept Equities underpinned
• Peripheral is still seeing BTP/Bund tighter with the spread trading at ~94bps.
• Looking ahead, BoE Bailey and Fed speaker are the highlights
• Bund futures are up 0.02 today at 176.23 with 10y Bund yields down -0.1bp at -0.448% and Schatz yields down -0.1bp at -0.718%.
• BTP futures are up 0.13 today at 152.90 with 10y yields down -1.8bp at 0.494% and 2y yields down -0.4bp at -0.430%.
• OAT futures are down -0.03 today at 166.30 with 10y yields up 0.3bp at -0.223% and 2y yields up 0.4bp at -0.653%.