Belly Of Curves Leads Early, Limited Cheapening Moves

Bund futures are ~40 ticks lower on the day, a little off session lows. Early German cash trade sees 2.5-3.5bp of cheapening across the major benchmarks, with the belly leading the move in light of U.S. Tsy & JGB market dynamics in Asia-Pac hours. Similar moves are seen across the remainder of the core/semi-core EGB space. Some tightening in Italian & Greek 10s is seen in the peripheral space (~1bp & ~2bp vs. Bunds, respectively). There has been little to touch on regionally, outside of the previously alluded to German retail sales data, while Euro STOXXX 50 futures have ticked away from session lows. Eurozone CPI & GDP data headline the regional docket today, with ECB-dated OIS showing a terminal deposit rate of ~3.92% ahead of the data.