Core fixed income continues to drift higher

Core fixed income has drifted a little higher and is generally challenging the highs seen in yesterday's session at the time of writing.

• The main event of the morning has been some disappointing UK retail sales. The silver lining in the data seems to be that it wasn't purely due to a lack of consumer demand, but there were product availability constraints due to shipping issues. However, it does show how the pingdemic and shipping constraints are affecting growth.
• Later today the only notable event will be a speech by the Fed's Kaplan.
• European equity indices are generally a little lower (although there are some exceptions like the Ibex which are close to flat) and peripheral spreads are flat to a little wider on the day.
• TY1 futures are up 0-1+ today at 134-12 with 10y UST yields down -1.2bp at 1.232% and 2y yields down -0.6bp at 0.215%.
• Bund futures are up 0.12 today at 177.16 with 10y Bund yields down -0.5bp at -0.496% and Schatz yields down -0.4bp at -0.760%.
• Gilt futures are up 0.16 today at 130.24 with 10y yields down -1.1bp at 0.527% and 2y yields down -1.3bp at 0.098%.