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Core fixed income moves higher ahead of 3/10y UST auctions

BOND SUMMARY

Core fixed income has been on the front foot, with equities in the red this morning but little in the way of new news driving the moves.

  • Today sees a light data calendar with Eurozone retail sales alongside a few ECB/BOE speakers. Most notable in the day ahead will be a speech from the Fed's Rosengren (at 18:00BST/13:00ET) and the weekly ECB asset purchase release (at 14:45BST/09:45ET).
  • In terms of supply the UST 3-year ($58bln) and UST 10-year ($38bln) auctions will be the highlights while the EFSF are holding a syndication for E4bln of a new long 5-year.
  • TY1 futures are up 0-2+ today at 131-26 with 10y UST yields down -0.5bp at 1.655% and 2y yields unch at 0.156%.
  • Bund futures are up 0.37 today at 171.74 with 10y Bund yields down -1.8bp at -0.322% and Schatz yields down -0.7bp at -0.714%.
  • Gilt futures are up 0.08 today at 128.32 with 10y yields unch at 0.772% and 2y yields up 1.0bp at 0.050%.

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