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A more contained session

EGB SUMMARY

A more contained afternoon session for EGBs, but finding a bid at the time of typing.

  • Some recovery in Equities saw some pull backs in Bonds.
  • Nothing in terms of triggers, some reflation unwind as Equity recover, some likely short cover especially in BTP (following taper trade), as we head into end of day for Europe, and ahead of Global prelim Services, composite, manufacturing PMIs tomorrow.
  • BTP saw largest daily fall in Yield in a month.
  • The Italian contract is up 60 ticks at the time of typing, pushing the BTP/Bund spread 5.5bps tighter on the session
  • German pulls back towards flat on the day, after leaning once again steeper
  • Looking ahead, Fed Kaplan, ECB Villeroy and BoC Macklem are the speakers left for the day.
  • All attention turns to tomorrow's data

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