Bunds Lower Following ECB

The main event of the day was the ECB. The 12:45BST statement was left unchanged and the main market moving event came on the back of a Bloomberg sources story in which it said that Lagarde would "adopt a weaker phrasing" about the level of the currency than in previous episodes of euro strength. This saw the euro move higher and Bunds lower and in the event when Lagarde was asked on the subject she said that the "movement needs to be monitored" for its impact on inflation.

• Bunds are underperforming both USTs and gilts, with German 10y yields 2.0bp higher while gilt yields were down 0.1bp and UST yields up 0.5bp on the day.
• Peripheral spreads are all tighter on the day, with BTP-Bund 10y spreads moving 4.0bp tighter on the day at writing.
• Bund futures are down -0.30 today at 173.38 with 10y Bund yields up 2.0bp at -0.444% and Schatz yields up 1.1bp at -0.687%.
• BTP futures are up 0.32 today at 145.36 with 10y yields down -2.0bp at 1.000% and 2y yields down -1.7bp at -0.123%.
• OAT futures are down -0.23 today at 167.14 with 10y yields up 1.5bp at -0.151% and 2y yields up 1.4bp at -0.629%.