Bunds breach 0.65%

Core fixed income is moving lower on headlines that Russia and Ukraine ceasefire talks are ongoing with Russia's main objective now seen as Donbass rather than the rest of Ukraine. There doesn't appear to be a whole lot new in these headlines but markets are paying attention to the positives nonetheless.

• Treasuries and gilts remain some way above yesterday's lows but Bund futures have broken to new lows with 10[year Bund yields up around 7bps on the day to 0.65%, the highest level since March 2018.
• It's another relatively light calendar for today with the Fed's Williams and Harker the headline speakers and US Conference Board consumer confidence and JOLTS the highlights on the data calendar.
• Markets will instead continue to focus on Russia-Ukraine and be driven by technical developments and momentum.
• TY1 futures are down -0-11 today at 121-11+ with 10y UST yields up 4.8bp at 2.509% and 2y yields up 5.9bp at 2.429%.
• Bund futures are down -1.04 today at 157.28 with 10y Bund yields up 7.3bp at 0.649% and Schatz yields up 7.1bp at -0.54%.
• Gilt futures are down -0.74 today at 120.54 with 10y yields up 7.0bp at 1.686% and 2y yields up 4.1bp at 1.393%.