Free Trial
ASIA

Coming up in the Asia-Pac Session on Monday:

MNI

Coming up in the Asia-Pac Session on Monday:

JGB TECHS

(H2) Stabilising

USDCAD TECHS

Bias Still Points Lower

AUDUSD TECHS

Fading Onto Recent Gains

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
Sign up now for free access to this content.

Please enter your details below and select your areas of interest.

Bear steepening has been the theme of core fixed income markets this morning as European investors continue to digest comments yesterday from Powell that seemed to put a faster pace of tapering pace back on the table. The Eurodollar strip has underperformed the Euribor and short sterling strips this morning.

  • There was a sharp move lower in Bunds around 8:00GMT/3:00ET with no new headline trigger. The moves seem to be attributed largely to continued reaction to Powell yesterday.
  • Gilts have continued their downside moves following a very weak 10-year auction which saw a tail of 1.9bp (last matched in June 2019). Liquidity in gilt markets remains constrained, particularly with the lower supply and continued buying over the next three weeks from the BOE.
  • Looking ahead ISM manufacturing will be the highlight (with ADP employment due before that). US data will be back in focus after Powell's comments yesterday.
  • TY1 futures are down -0-16 today at 130-10 with 10y UST yields up 4.8bp at 1.495% and 2y yields up 3.5bp at 0.603%.
  • Bund futures are down -0.53 today at 171.84 with 10y Bund yields up 3.4bp at -0.317% and Schatz yields up 2.0bp at -0.777%.
  • Gilt futures are down -0.43 today at 125.85 with 10y yields up 6.5bp at 0.872% and 2y yields up 10.3bp at 0.573%.