Core Bonds Away From Session Cheaps As Tsys Firm Into NFPs

The light firming outlined in U.S. Tsys helps bias Bund & gilt futures in the same direction, although the latter two contracts still print below flat on the day.

• Bund futures last -20, while the German cash benchmarks show 2.5bp richer to 2.5bp cheaper, as the curve twist steepens (as do U.S. Tsys).
• Core/semi core EGB curves generally see similar moves, with spreads to Bunds little changed.
• Peripherals are generally a touch wider vs. Bunds, although Greece provides a notable exception to that rule, with 10s there tightening on the day as the 10-Year spread threatens the 120bp mark once again.
• Gilt futures last -15, with cash benchmarks in the UK now little changed across the curve on the session.