Bear Steepening Continues

Sovereign bonds have traded weaker this morning and mark a continuation of yesterday's bear steepening theme. Equities have traded lower while the dollar has made broad gains against G10 FX.

• UST cash yields have drifted higher and are broadly 1bp higher across much of the curve. TYU1 trades at 133-17+, near the bottom end of the day's range (L: 133-15 / H: 133-22).
• The gilt curve has steepened as a result of the short end firming slightly and longer end yields inching higher. The 2s30s spread is 2bp wider on the day.
• The bund curve has bear steepened with 2s30s up 1bp.
• OATs trade in line with bunds, with the longer end similarly underperforming.
• The European data slate has been light this morning, with the market instead focused on US claims data and the second estimate of US Q2 GDP, which will be published later today.