A fairly subdued morning session has...>

BOND SUMMARY: A fairly subdued morning session has seen Bunds and gilts move a

little higher and Treasuries largely unchanged on the day. This is against a

backdrop of marginally lower equities in both Europe and US futures.

- BTPs reached their highs of the day after a strong auction in which Bloomberg

report the bid-to-cover was at its highest level for a 10-year BTP auction since

2012. 10-year BTP spreads have narrowed 2.5bp on the day at writing while other

peripheral spreads are largely unchanged.

- In terms of data today, Eurozone CPI was a bit higher than expected despite

misses in the French and Italian CPI data.

- Looking ahead we have speeches from both Haldane and Cunliffe of the BOE. From

the Fed we have Powell testifying before the House where the Q&A should be

interesting while Williams also speaks on central banking in the age of Covid.

Brainard, Bostic and Kashkari are all due to speak on topics other than monpol.

The MNI Chicago Business Barometer is also due for release.

- TY1 futures are up 0-0+ today at 139-11 with Bund futures up 0.08 at 176.74

and Gilt futures up 0.04 at 137.84.