Bunds outperforming

There has been a slight risk-off undertone to markets this morning and Bunds and Treasuries are a little higher as a result.

• Bunds remain the outperformers following yesterday's Q4 supply announcement. No change to the original plans for the quarter were announced, which will mean a sharp slowdown in issuance relative to Q3, with issuance lower than market expectations.
• German state CPI this morning has also been on the soft side while Spanish flash HICP was also lower than expected. Weak inflation will put more pressure on the ECB to act further, and as well as Bunds moving higher this morning we have also seen most peripheral spreads tighten a little despite equity markets moving a bit lower.
• Another slew of speakers later today with BOE's Bailey and Fed's Williams, Clarida, Quarles, Harker all due to speak. We also have the first presidential debate this evening.
• TY1 futures are up 0-2 today at 139-22 with 10y UST yields down -0.2bp at 0.652% and 2y yields unch at 0.126%.
• Bund futures are up 0.16 today at 174.78 with 10y Bund yields down -1.2bp at -0.540% and Schatz yields down -0.6bp at -0.715%.
• Gilt futures are up 0.05 today at 136.38 with 10y yields down -0.5bp at 0.196% and 2y yields down -0.1bp at -0.61%.