BOE and ECB meetings due up shortly

After yesterday's Fed meeting, we now await policy announcements from the ECB and BOE.

• Treasuries have pared moved higher with the 2s10s curve steepening as markets reduce the probability of hikes further out the curve. 10-year UST yields are higher than expected morning while 2-year yields are lower.
• Gilts have moved a little lower, as the market prices in a greater chance of a hike today following yesterday's higher-than-expected inflation data (and in spite of worsening Omicron case data in the UK). Markets are now pricing a close to 50% probability of a hike today, up from around 40% yesterday. The MNI Markets team expects an on hold decision today as the uncertainty from Omicron in our view seems higher than the uncertainty due to the end of furlough in November.
• Bunds have stayed within yesterday's ranges. Today's ECB meeting will announce the follow-up to PEPP from April, but we are not sure we will get too much in the way of details until February meeting.
• TY1 futures are up 0-9+ today at 130-24+ with 10y UST yields down -1.4bp at 1.445% and 2y yields down -2.4bp at 0.642%.
• Bund futures are down -0.18 today at 174.14 with 10y Bund yields up 0.8bp at -0.356% and Schatz yields down -0.2bp at -0.693%.
• Gilt futures are down -0.20 today at 127.10 with 10y yields up 1.1bp at 0.744% and 2y yields up 0.8bp at 0.484%.