Day ahead

Bunds are higher in line with core fixed income this morning on the back of Covid concerns, the Taliban taking control of Kabul and softer than expected Chinese data.

• This is also weighing on European equity futures this morning, with most indices down between 0.5% and 0.7% on the day.
• Peripheral spreads are also wider this morning, with 10-year BTP-Bund spreads up 0.7bp on the day, but the biggest moves seen in semi-core with Irish, Slovak and Slovenian 10-year spreads all more than 1.0bp wider on the day.
• There's no top tier data due across the Eurozone for much of the week, with flash PMI data next Monday the next tier 1 data event in the Eurozone.
• Bund futures are up 0.25 today at 176.89 with 10y Bund yields down -1.1bp at -0.479% and Schatz yields down -0.6bp at -0.749%.
• BTP futures are up 0.15 today at 155.29 with 10y yields down -0.4bp at 0.541% and 2y yields down -0.8bp at -0.502%.
• OAT futures are up 0.18 today at 162.47 with 10y yields down -0.8bp at -0.139% and 2y yields down -0.7bp at -0.714%.