Curves steepening as some pressure comes off the 2-year

TY1 futures are higher while gilt and Bund futures are marginally lower on the day. The focus is on partial retracement of 2-year yields with curves steepening across core FI today after yesterday's large moves. The moves in 2-year gilt/UST yields are a bit smaller than those seen in STIR markets.

• There have not been any real big headline drivers this morning. A number of sellside analysts continue to bring forward their expectation of BoE hikes (but still to a lesser extent than the market has priced). While we did see a decent swing in 10s30s gilts this morning as it was announced that the 30-year green gilt syndication would not take place today, but later in the week after some green policy announcements from the government.
• We have a number of central bank speakers due today including the BoE's Bailey and Mann, the ECB's Lane and Panetta as well as the Fed's Daly, Barkin, Bostic and Waller.
• The only notable data due is US housing starts.
• TY1 futures are up 0-2 today at 130-26+ with 10y UST yields down -1.7bp at 1.585% and 2y yields down -3.4bp at 0.392%.
• Bund futures are down -0.06 today at 169.05 with 10y Bund yields up 0.1bp at -0.148% and Schatz yields down -1.7bp at -0.674%.
• Gilt futures are down -0.12 today at 124.19 with 10y yields up 0.4bp at 1.139% and 2y yields down -1.2bp at 0.700%.