Core fixed income in demand

Core fixed income has been in demand this morning, moving higher shortly after 7:30GMT on a safehaven bid which also saw demand for the Swiss franc. There were no significant headlines out at the time, although there is continued talk of the extended lockdowns across the Eurozone. Despite the moves, Eurozone peripheral spreads are only a little wide on the day.

• There are a number of central bank speakers scheduled today and also a hefty chunk of supply led by the EU SURE syndication where E8bln of the 5-year and E5bln of the 25-year tranches are being sold.
• TY1 futures are up 0-7 today at 131-24+ with 10y UST yields down -4.1bp at 1.655% and 2y yields down -0.3bp at 0.146%.
• Bund futures are up 0.31 today at 171.80 with 10y Bund yields down -2.1bp at -0.333% and Schatz yields down -0.7bp at -0.714%.
• Gilt futures are up 0.25 today at 128.00 with 10y yields down -1.7bp at 0.795% and 2y yields unch at 0.067%.