Already looking ahead to later in the week

Core fixed income is off the highs seen in the Asian session and on the European open but Treasuries and gilts are still a bit higher than Friday's close (Bunds largely unch).

• There's a lighter calendar to start the week today but there are some big events to look ahead to this week. Eurozone PMI data on Wednesday, the German IFO and US durable goods orders/claims on Thursday and US personal income/spending are the highlights on the data calendar.
• On top of this we have the Bank of England MPC meeting this week, with the decision and MPS due to be published on Thursday. There is little expectation of any policy change, or change to the 8-1 vote to keep the APF intact (Haldane is again expected to vote to lower the target). The Bank is expected to acknowledge the better than expected growth data and higher-than-expected inflation but to also point to higher uncertainty.
• Peripheral bond spreads are tighter this morning.
• TY1 futures are up 0-5+ today at 132-15+ with 10y UST yields down -0.7bp at 1.433% and 2y yields up 0.2bp at 0.257%.
• Bund futures are down -0.10 today at 172.50 with 10y Bund yields up 0.3bp at -0.199% and Schatz yields up 0.3bp at -0.668%.
• Gilt futures are up 0.07 today at 127.76 with 10y yields down -0.1bp at 0.750% and 2y yields up 2.0bp at 0.145%.