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BOND SUMMARY

After a soft start to the day for core we have seen a bid emerge since around 9:15GMT/4:15ET although there appears to be little in the way of headline drivers behind the move. This has led to Treasuries, gilts and Bunds being largely unchanged on the day.

  • German Q3 GDP was revised a little higher and the IFO current assessment component was higher than expectations but the IFO expectations component disappointed. There was little immediate market reaction to either release, however.
  • Looking ahead we have a number of central bank speakers including ECB's Lagarde, Lane, Schnabel, Rehn, de Cos; Fed's Clarida, Williams, Bullard and the BoE's Haskel.
  • TY1 futures are flat today at 138-10 with 10y UST yields up 0.4bp at 0.859% and 2y yields down -0.1bp at 0.161%.
  • Bund futures are down -0.06 today at 175.35 with 10y Bund yields up 0.8bp at -0.574% and Schatz yields up 0.3bp at -0.758%.
  • Gilt futures are down -0.05 today at 134.90 with 10y yields up 0.9bp at 0.326% and 2y yields up 1.0bp at -0.24%.

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