Day ahead

Its been a generally positive session for Asian equities while European equity futures are mixed and US equity futures moving a bit higher.

• Treasury futures have continued to grind lower and have broken through the 133-07 September 1 low. The 100-dma at 133-02+ on the continuation chart is now in focus ahead of the 132-25+ August 26 low.
• Bund futures have seen less direction, trading in the middle of yesterday's range, but peripheral spreads are generally tighter this morning (with the exception of Greece which is a little wider on the day).
• German industrial production was stronger than expected this morning and the data calendar is fairly light with the German ZEW survey and the final prints of Eurozone GDP the highlights.
• There is a good deal of supply this morning with Spain likely to hold its inaugural 20-year Green Obli syndication, the US holding a 3-year note auction, the UK holding 3/50-year gilt auctions, Austria holding a 10/15-year RAGB auction, Germany holding 10/25-year ILB auctions as well as a number of bill auctions.
• The market will continue to look ahead to the ECB meeting on Thursday.