Big downside moves

Core fixed income coming under pressure this morning with gilts underperforming at the 10-year sector of the curve, but Treasuries seeing larger moves in 2-years (with 2-year UTS yields up 10.4bp on the day at writing). The moves seem more driven by momentum rather than any specific headlines today with the BoJ having intervened at least twice to keep 10-year yields in the +/-0.25% target range. This has led to big moves in USDJPY which briefily touched 125 this morning.

• Biggest event of the day will be a speech by BOE Governor Bailey. He is due to speak with Guntram Wolff, Bruegel with the topic 'Macroeconomic and financial stability inchanging times'. The event is scheduled for 12:00GMT / 7:00ET.
• Elsewhere we have US advance trade and inventory data but the calendar remains fairly light with focus remaining on the big market moves.
• TY1 futures are down -0-10 today at 121-07+ with 10y UST yields up 2.2bp at 2.499% and 2y yields up 10.4bp at 2.377%.
• Bund futures are down -0.63 today at 158.02 with 10y Bund yields up 1.8bp at 0.602% and Schatz yields up 4.5bp at -0.99%.
• Gilt futures are down -0.60 today at 120.04 with 10y yields up 4.0bp at 1.734% and 2y yields up 7.7bp at 1.483%.