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Awaiting BoE

BOND SUMMARY

A range bound morning session for EGBs, with focus turning to the BoE, without forgetting the US NFP tomorrow.

  • Bund initially ticked lower, taking its cue from the Risk on tone, with Estoxx futures (VGM1) making an attempt at 4000, printed 3999 high.
  • Bund has since pared early selling with Equities drifting back towards the lower part of the range.
  • Peripherals are mostly flat against the German 10yr
  • A mixed start for Gilts, with 10yr trading in a tight 20 ticks range (127.98/128.18), heading into BoE at midday.
  • US Treasuries trade inline with EGBs, with curve leaning bull flatter.
  • Tnotes trade within overnight ranges.
  • Looking ahead, BoE rate decision at 12.00BST, and presser at 13.00BST.
  • UK local elections.
  • On the data front, US IJC is the notable data.
  • Speakers include ECB de Guindos, Lagarde, Schnabel, and Fed Williams, Kaplan, Mester.
  • Fed also release May 2021 financial stability report

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