Bunds lower as HICP higher

Treasuries are flat, Bunds lower while gilts are higher (but only due to a higher open following yesterday's bank holiday).

• The highlight of the morning has been the release of Eurozone CPI. The flash estimate came in above expectations at 3.0%Y/Y (2.7% exp, 2.2% prev) with core CPI also printing higher than expected at 1.6%Y/Y (1.5% exp, 0.7% prev). Bunds fell on the release of the data.
• Looking ahead the highlight will the MNI Chicago Business Barometer and the Conference Board Consumer Confidence data. These data will set the tone ahead of tomorrow's ISM print and payrolls on Friday.
• TY1 futures are down0-0+ today at 134-03+ with 10y UST yields up 0.3bp at 1.284% and 2y yields up 0.2bp at 0.204%.
• Bund futures are down -0.26 today at 176.02 with 10y Bund yields up 2.1bp at -0.420% and Schatz yields up 0.9bp at -0.742%.
• Gilt futures are up 0.20 today at 128.85 with 10y yields down -1.4bp at 0.658% and 2y yields down -0.5bp at 0.186%.