Bonds Back From Session Lows, Curves Generally Bear Steepen

Core global FI markets consolidate off early Thursday cheaps, with global equity benchmarks off lows and the broader USD off highs.

• That leaves the major German cash benchmarks running 2-4bp cheaper as the curve bear steepens.
• Bund futures are -45, bouncing after bears failed to force a challenge of Tuesday’s low.
• Headline flow has been relatively limited since European trading got underway.
• The only real news we have seen came in the form of a Catalan outlet reporting that acting Spanish PM Sanchez's PSOE and the Catalan separatist Together for Catalonia (Junts) have reached an agreement in principle for the latter to back the former's nominee for speaker of the Congress of Deputies (see more on that here).
• 10-Year EGB spreads are generally little changed to a touch wider vs. Bunds. GGBs provide the exception, with ~1bp of tightening seen there.
• Impending supply from France & Finland provides the scheduled focal point for participants today, with the regional calendar somewhat limited.