Bunds & Gilts Look To Tsys For Direction After U.S. PPI Comes In On The softer Side

Core global FI markets outside of U.S. Tsys initially richen a little (adding to the oil-derived bounce from near session cheaps) on the back of a softer than expected round of headline U.S. PPI data (most of the core measures were also a shade softer than the median level provided by the BBG survey), stabilising around post-data bests at typing.

• Gilt futures manage a limited look above their morning peak, with the major cash benchmarks last 3-7bp richer, as the early bull steepening bias remains intact, albeit moderating off extremes.
• Bund futures operate near the middle of their session range, with the major cash benchmarks on that curve sitting 2-3bp cheaper on the day.