Bear steepening

A range bound session for core as we start the week.

• Nonetheless the bear steepening trend remains en vogue, with German 5/30s once again trading near session high, and still eyeing the August peak at 72.445 next.
• In peripheral, BTP/Bund is testing 95.00bps, and lowest (tightest) levels since 2015.
• Support target here is at 91.436 (02/12/15).
• US stimulus, US Covid roll outs, Lagarde on EU positive outlook and Mario Draghi's odds of forming a Government boosted over the weekend, has kept Core Bonds better offered and BTP better bid
• Gilts has traded inline with Bund, and the futures contract trades down 33 ticks on the UK Vaccination roll outs, brushing aside some concerns regarding the South African variant.
• US Treasuries, Despite the small unwind in equity markets, core bonds are trading in the red and bear steeper.
• US 5/30s are off their steepest levels in early trade at +152.305bps and last trading at +151.762bps
• Looking ahead, BoE Gov Bailey, Fed's Mester andECB's Lagarde & Villeroy all scheduled.
• No tier 1 data