Core FI under pressure after EU doesn't ban vaccine exports

Core fixed income has been under some pressure this morning after the EU didn't ban vaccine exports yesterday and President Biden announced a more ambitious target for vaccinations in the US.

• Gilts are marginally underperforming Bunds with the UK being seen as a beneficiary of the EU not going so far as banning exports. Note that although most of the press coverage has focused on the Oxford/AZ supply in the Eurozone, only 1 million doses of that vaccine were exported to the UK from the EU. The more significant exports from Europe to the UK have been in the form of the Pfizer vaccine.
• So far this morning, the German IFO data has come in better than expected, UK retail sales in line with expectations and the BOE Financial Policy Summary having no real surprises.
• Looking ahead, US personal income/spending data is likely to be the headline while trade data will also be closely watched.
• TY1 futures are down -0-9 today at 131-27+ with 10y UST yields up 2.1bp at 1.657% and 2y yields down -0.6bp at 0.134%.
• Bund futures are down -0.41 today at 172.17 with 10y Bund yields up 3.0bp at -0.355% and Schatz yields up 0.1bp at -0.721%.
• Gilt futures are down -0.27 today at 128.39 with 10y yields up 3.1bp at 0.759% and 2y yields up 1.4bp at 0.053%.