Bunds move above yesterday's highs

After a fairly comfortable day trading within yesterday's range, core fixed income including Bunds has broke above yesterday's highs shortly after the US equity open, despite only a slightly risk-off tone to US markets. European equity markets have underperformed throughout the day and peripheral spreads have generally widened today, too. BTPs have been the notable exception as they continue to outperform.

• The EU Commission announced today that the EUR17bln raised through the sale of SURE bonds has now been disbursed with EUR10bln going to Italy, EUR6bln to Spain and EUR1bln to Poland.
• Focus remains on the ECB meeting later this week where an extension to the PEPP programme is likely to be discussed but probably not acted upon until December.
• Bund futures are up 0.54 today at 175.84 with 10y Bund yields down -2.8bp at -0.609% and Schatz yields down -1.2bp at -0.773%.
• BTP futures are up 0.35 today at 149.69 with 10y yields down -3.7bp at 0.700% and 2y yields down -0.9bp at -0.374%.
• OAT futures are up 0.46 today at 169.82 with 10y yields down -2.7bp at -0.327% and 2y yields down -1.7bp at -0.715%.