Attention turns to Fed tomorrow

EGBs have continued the afternoon session with this morning's ranges.

• Most investors awaits the Fed tomorrow, and any new news from the unofficial EU/UK talks.
• Bund drifted lower, as Equities held onto gains into the US cash open, but we have since faded from the highs on positioning and profit taking.
• As such, Bund has now recovered to trade in positive territory, up 11 ticks on the day.
• Peripheral have outperformed somewhat, and spreads sits tighter against the German 10yr, with Italy leading and 1.2bp tighter.
• German curve is flat and has traded in a fairly tight range in 5/30s, 64.06-65.47 (low/high).
• Looking ahead, there's nothing left of note on the calendar and attentions turns to tomorrow's events.
• Bund futures are up 0.11 today at 174.11 with 10y Bund yields down -0.8bp at -0.490% and Schatz yields up 0.4bp at -0.701%.
• BTP futures are up 0.27 today at 146.13 with 10y yields down -2.3bp at 0.996% and 2y yields down -1.5bp at -0.160%.
• OAT futures are up 0.21 today at 168.15 with 10y yields down -1.6bp at -0.218% and 2y yields up 0.1bp at -0.637%.