Another busy session in terms of volumes

Another big session in terms of volumes for Bonds.

• Bund and EGBs have extended lower this morning after the Hawkish BoE stunned the markets yesterday.
• Bund is off the low, after testing initial support noted at 170.20 (did print 170.17 low).
• A clear break below 170.00,would open to next yield level seen at -0.178%, which today, reference 170.26, would equate to 169.50.
• Gilts were initially wider against Germany but are back to flat at the time of typing.
• The spread traded at 117.5bps in early trading, to the widest levels since 2019.
• Next resistance is at that 2019 peak 121.0123, which is also the widest level since June 2016.
• The spread is now at 116.3
• US treasuries are also down but are better bid on the margin, bringing the Tnote/Bund spread 3.5bps tighter on he session.
• Looking ahead, we have no real market moving data, and focus turns on speakers, including ECB Elderson, Lane, Fed Mester, Powell, Clarida, Bowman, George, Bostic, BoE Tenreyro
• After markets we get ratings from Fitch on Belgium, S&P on Germany, DBRS on Finland