Bunds Off Session Highs, Lagging Most EGB Counterparts Post-ECB Decision

Bund futures remain reluctant to solidify a meaningful move higher, beyond recent session ranges, retracing from best levels even as ECB President Lagarde remains non-committal to a rate hike in September. Post-data weakness in U.S. Tsys will provide a limiting cross-mark factor, while mixed wording on inflation and Lagarde noting that the wider economy has not seen much in the way of transmission from already delivered tightening also noted. Bund futures are +50 or so at typing, the best part of 40 ticks from best levels. Wider German cash trade sees 3.5-6.5bp of richening on the day. German 10s have underperformed the remainder of the core/semi-core EGB space and most peripherals post-ECB decision.