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Core FI continues to selloff - Schatz the biggest mover

BONDS
  • Schatz yields are now over 20bp higher on the day at 2.556%, with the German curve bear flattening.
  • The UST curve has seen more of a flattening move, but less movement in 2-year yields with just under a 20bp move.
  • Gilts have seen the smallest moves of the day with a largely parallel move of around 8.5bp at writing.
  • The moves have been driven by a recovery in bank stocks, both on lower contagion fears continuing from yesterday and from the story about potential for the US to increase the limit on insured deposits.

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