Brexit talks and hints ahead of next week's ECB meeting will be eyed

It's been a fairly subdued start to the week after Treasuries stuck to a very tight 0-03 range overnight and Bund futures barely budged.

• The highlight of the week ahead will likely be Brexit talks. According to some press reports over the weekend, a deal is close to being struck on fisheries and could come as soon as this week, but it is unclear whether the other two major points are likely to be resolved this week or if talks could drag on even longer.
• In terms of data this week, the final PMI prints are likely to be the highlight. There are a number of speeches from ECB Executive Board members that will be watched ahead of next week's monetary policy meeting to see if there is any guide on direction, however.
• Our technical analyst notes that recent gains for Bund futures stalled just above the 61.8% retracement of the Nov 4 - 11 sell-off and this is seen as a potential bearish development. Key near-term support lies at 174.96, Nov 25 low.
• Bund futures are up 0.09 today at 175.59 with 10y Bund yields down -0.3bp at -0.592% and Schatz yields down -0.3bp at -0.765%.
• BTP futures are unch today at 151.50 with 10y yields up 0.2bp at 0.595% and 2y yields up 0.4bp at -0.416%.
• OAT futures are up 0.01 today at 170.10 with 10y yields unch at -0.348% and 2y yields down -0.1bp at -0.695%.