A busy morning session

A busy early morning session for EGBs, with elevated volumes noted in the longer end (Bund).

• German curve took its cue from the French German and EC PMIs beat.
• Curve is bear steeper as the long end comes under pressure and the Bund contract is down 42 ticks at the time of typing.
• 5/30s trades at the high of the session.
• Peripherals are lower too, but at a slower pace, translating in tighter spreads against German 10s.
• Greece leads at 2.3bps.
• Gilts have traded inline with EGBs, with the long end underperforming on Brexit hopes, pushing the curve bear steeper, and 5/30s at the high of the session.
• US treasuries continue to trade in a tight range with investors awaiting news on US stimulus and the FOMC.
• Looking ahead, US Retail sales and PMI are the notable data. Speakers sees ECB Guindos, de Cos, Schnabel and Weidmann.
• ALL EYES on Brexit, US stimulus and especially the Fed.
• TY1 futures are unch today at 137-27 with 10y UST yields up 1.0bp at 0.920% and 2y yields up 0.4bp at 0.120%.
• Bund futures are down -0.39 today at 177.88 with 10y Bund yields up 2.3bp at -0.589% and Schatz yields up 1.2bp at -0.754%.
• Gilt futures are down -0.30 today at 134.46 with 10y yields up 2.5bp at 0.284% and 2y yields up 1.0bp at -0.53%.