Broadly Flat As IFO And ECB-Speak Fail To Move Needle

Core/semi-core EGBs are flat to a touch firmer this morning, underperforming UK counterparts.

• Bunds are up 8 ticks at 137.41, with initial resistance of 137.57 still around 10 ticks away from today's high. A slightly weaker than expected IFO print will have provided some background support, though came in the wake of a soft flash PMI release last Friday.
• ECB-speak this morning and over the weekend has for the most part attempted to push back on current rate cut pricing. Slovenian CB Governor Vasle stressed the importance of Q1 2024 data on the policy path today, after fellow hawks Nagel and Wunsch (alongside a Reuters sources piece) provided similar communique late Friday/over the weekend.
• Meanwhile, Bank of Portugal's Centeno told MNI that talks on rate cut criteria and timing could be entertained at the next ECB meeting in January.
• German and French cash yields are slightly lower on the day.
• Periphery spreads are generally tighter to Bunds, with the BTP/Bund spread 1.4bps narrower and trading within recent ranges at 169.2bps.
• The remainder of today's data calendar is light (tomorrow sees the November final HICP release), with further ECB-speak eyed - highlighted by Executive Board members Schnabel and Lane.