Core/semi-core Firmer; Peripherals Underperform

Bunds trade near intra-day highs, on track for a fourth consecutive day of gains amid a week of dovish central bank developments.

• Morning tailwinds have come from BoE Governor Bailey, who noted to the FT that rate cuts are "in play" at future meetings.
• Slightly stronger than expected UK retail sales data added some pressure this morning, but the move quickly reversed.
• The German IFO survey for March also came in above expectations, but the reaction in Bunds was limited.
• Bunds are +32 at 132.58. Initial firm resistance to watch is at 132.98, the 50-day EMA. A clear break of this average would be a bullish development.
• A reminder that Bundesbank President Nagel is currently speaking at an MNI Webcast, where early comments are in line with his recent stance (r.e. rate cuts possible before the summer break if warranted by the data).
• We also hear from ECB-hawk Holzmann at 1000GMT and the dovish Centeno at 1100GMT.
• Peripherals underperform, with 10-year spreads to Bunds wider across the board. The 10-year BTP/Bund spread is +2.5bps at 129.4, after reaching a high of almost 132bps earlier. BTP Short Term issuance is due at 1000GMT.