Bund and gilt yields hit new multi-month highs

It has been a choppy morning session with Bunds and gilts falling to new recent lows around the open.

• 10-year Bund yields hit their highest levels since June while 10-year gilt yields the highest levels in 11-months (still some way off the spike seen ahead of the BoE's emergency QE decision. Treasuries have failed to break through (or even challenge) yesterday's low (which itself was higher than Wednesday's low).
• We are now a little off the lows of the day in Bunds and gilts but peripheral spreads remain tighter and the overarching sentiment of the market remain risk-positive.
• Flash PMI data has largely been ignored. It surprised to the upside for manufacturing across Germany, France, the Eurozone and UK but services data was a bit more mixed (with the UK surprising to the upside but remaining below 50).
• Later today we will hear from the Fed's Barkin and Rosengren and BOE's Vlieghe.
• TY1 futures are down -0-4+ today at 135-23 with 10y UST yields up 0.9bp at 1.305% and 2y yields up 0.3bp at 0.110%.
• Bund futures are down -0.26 today at 174.42 with 10y Bund yields up 1.9bp at -0.328% and Schatz yields up 0.3bp at -0.690%.
• Gilt futures are down -0.27 today at 130.58 with 10y yields up 2.1bp at 0.642% and 2y yields up 0.9bp at -0.37%.