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BoE, US Data and speakers in Focus

BOND SUMMARY

EGBs trade mainly in the red this morning albeit within past ranges.

  • Bunds are down 14 ticks at the time of typing with the curve leaning steeper.
  • Peripherals have traded inline with the German 10yr and as such trade flat to a touch tighter.
  • Italy leads by just 0.3bp.
  • Gilts have traded range bound (127.36-127.55), as investors await for the BoE statement.
  • Main focus will be on the vote count and whether another MPC member joins Haldane in calling for a reduction in the QE target.
  • US Treasuries are trading in tandem with EGBs, with the long end strip in the red,
  • Tnotes are down 3 ticks and within the overnight ranges.
  • Price action in the US has been limited as we await for US data and speakers.
  • Looking ahead, a busier day on the data front, with the notable US data being, GDP (3rd reading), Core PCE, IJC, Wholesale Inventory and Durable goods.
  • Fed will also release their Bank stress test results.
  • In Europe, European Council, 24-25 June 2021, no set time for the presser as of yet.
  • Plenty of speakers are scheduled, which today include ECB Panetta, Schnabel, Fed Barkin, Harker, Williams, Bullard, Kaplan,
  • Early attention will be on the UK BoE

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