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Consolidating around yesterday's close ahead of next German state CPI data

EGBS
  • Ahead of the next round of German state CPI data (with at least three states due to report at 9:00BST / 10:00CET) Bunds have stabilized somewhat, with futures in a 148.37-148.64 range over the past 20 minutes or so and are now little changed on the day. This is from the high of 149.22 seen following the NRW print ahead of the European open.
  • The German curve has seen 2s10s flatten by around 1.0bp to 38.8bp on the day but 10s30s steeping by 1.0bp to 9.9bp.
  • 10-year peripheral spreads are mixed this morning with Spanish spreads 0.9bp wider on the day (possibly on the disappointing Spanish retail sales print this morning) while BTP spreads at 0.3bp tighter and GGB spreads 1.9bp tighter.

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