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USD

Some spillovers from Tnotes sellers

GILTS

Early opening calls

SILVER TECHS

Consolidating

BUNDS

Trading at initial target

BTP rally the morning focus

BOND SUMMARY

Core fixed income has generally traded within yesterday's ranges, although we did see some early weakness in gilts on the open (now reversed).

  • The main story of the morning is the continued BTP rally. After 10-year yields broke to record low levels yesterday they reached new highs again earlier this morning. The futures contract hit a high of 153.82, just shy of the 153.87 level our technical analyst noted (corresponding to the 1.00 projection of the Oct-Jan rally from the Jan 22 low).
  • Looking ahead there are no notable central bank speakers scheduled but there will be focus on Michigan confidence data.
  • TY1 futures are up 0-1+ today at 136-29 with 10y UST yields down -1.2bp at 1.154% and 2y yields down -0.2bp at 0.108%.
  • Bund futures are up 0.06 today at 176.49 with 10y Bund yields down -0.5bp at -0.464% and Schatz yields down -0.1bp at -0.723%.
  • Gilt futures are up 0.04 today at 132.52 with 10y yields down -0.7bp at 0.462% and 2y yields down -0.5bp at -0.51%.
MNI London Bureau | +44 203-865-3820 | tim.davis@marketnews.com