A busy day for Govies

Bund unwinds from the low with the move looking more corrective than Month End related given the small pace of the pullback.

• Nonetheless Month End flow can't be ruled out with a decent Barcap extension for European Govies, although we still have one day left.
• German 5/30s continues to fade the steepening bias after testing highest levels since July 2019 this morning.
• The pullback is mainly driven by the stronger selling of the shorter end, Bobl and Schatz.
• Peripheral trades close to flat against the German 10yr, with Greece 2.1bps tighter.
• Looking ahead, Riksbank Ingves and Fed Williams are the speakers left on the calendar
• Jun Bund futures (RX) down 72 ticks at 170.9 (L: 170.71 / H: 171.56)
• Germany: The 2-Yr yield is up 2.3bps at -0.686%, 5-Yr is up 4.2bps at -0.615%, 10-Yr is up 4.9bps at -0.269%, and 30-Yr is up 3.6bps at 0.284%.
• Jun BTP futures (IK) down 57 ticks at 148.93 (L: 148.57 / H: 149.36)
• Jun OAT futures (OA) down 63 ticks at 161.58 (L: 161.39 / H: 162.14)
• Italian BTP spread up 0.6bps at 96.3bps
• Greek bond spread down 2.4bps at 116.7bps