Brexit waiting game

We are potentially in for a bumpy ride with Brexit headlines again today but at the time of writing there had only been small moves in core fixed income with Bunds a bit higher but Treasuries and gilts a little lower.

• The only notable data today has been the German ZEW survey which saw the current situation component print in line with expectations but the expectations component surprise positively.
• Other than Brexit, negotiations over the EU Budget approval will continue and if differences could be resolved peripheral spreads would benefit.
• TY1 futures are down -0-1+ today at 137-21+ with 10y UST yields up 1.0bp at 0.934% and 2y yields up 0.3bp at 0.146%.
• Bund futures are up 0.16 today at 178.01 with 10y Bund yields down -1.3bp at -0.596% and Schatz yields down -0.4bp at -0.769%.
• Gilt futures are down -0.13 today at 134.42 with 10y yields up 0.8bp at 0.290% and 2y yields up 1.4bp at -0.67%.