A little lower with factory orders the focus later

Core bonds have moved marginally lower this morning despite equity markets drifting a little lower.

• The highlight of today's calendar is US factory orders and the final print of durable goods. BOE's Ramsden and Fed's Bullard are also due to speak.
• The focus will remain on Evergrande, with some confusion over the situation there at present, while later in the week attention will turn to the US labour market report.
• TY1 futures are down -0-4+ today at 132-01 with 10y UST yields up 2.3bp at 1.485% and 2y yields up 0.4bp at 0.269%.
• Bund futures are down -0.08 today at 170.14 with 10y Bund yields up 1.0bp at -0.216% and Schatz yields down -0.2bp at -0.716%.
• Gilt futures are up 0.02 today at 125.35 with 10y yields up 1.5bp at 1.016% and 2y yields up 1.3bp at 0.408%.