Attention turns to the ECB

A calmer start for market when you compare to the very busy start of the week.

• This is not too surprising given investors and market participants turning their attention towards the ECB meeting and Presser.
• It could be an interesting one, with new opening statement format, Strategy review, forward guidance, inflation target.
• Bund is flat on the session and so is the curve.
• Peripheral spreads are mostly tighter, with Spain, Italy and Portugal leading by 0.7bp.
• Gilts were mostly better offered ahead of Broadbent (neutral) speech titled ``Mismatch'.
• There was nothing new to get excited about, noted that inflation was likely transitory, and had to watch data closely.
• With the lack of anything hawkish, Gilts are back in positive territory, up 5 ticks at the time of typing.
• US Treasuries have been better offered this morning on the risk on tone.
• Tnotes tested through yesterday's low, but found some demand at 133.30, and now trades at 134.02.
• Looking ahead, ECB rate and presser, US data include IJC, the most notable one.