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A calm morning session

BOND SUMMARY

A subdued early morning session for EGBs, with no big 1 data scheduled.

  • German PPI came inline for the MoM and a 2 tenth beat for the YoY reading.
  • Very limited impact in Core and semi core, with Equity futures trading within the open ranges.
  • German curve is bear steepening somewhat, as the long end underperforms.
  • Peripheral spread are a touch wider with Spain at 0.9bp on the day.
  • Gilts are lower with their EU counterpart.
  • UK Retail Sales was largely in line with expectations.
  • US Tnotes are flat on the day, on low volumes 110k lots traded for the contract.
  • Looking ahead, sees US Current Account Balance and Michigan on the data front.
  • Also few Fed speakers are scheduled with Bullard/Bostic and Kashkari.
  • For the EU, ECB Schnabel will also be speaking.

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