Bunds & Gilts Just Off Session Cheaps Ahead Of U.S. CPI

Bund and gilt futures sit a little above their respective session lows after the previously covered pull back from best levels.

• Little to really flag in terms of meaningful news stories, leaving cross-asset dynamics at the fore pre-U.S. CPI.
• Today’s ECB speak hasn’t introduced much fresh information to the policy debate, with the hawkish and dovish wings sticking to familiar arguments re: rates, QT & bank MRR.
• The wings of the Bund curve see a slightly more pronounced, albeit still modest, round of cheapening vs. the belly.
• EGB spreads are typically little changed to tighter vs. Bunds.
• The gilt curve has moved to a state of modest bear steepening from the early bear flattening.