Digesting the FOMC

Bond markets are still searching for neutral after yesterday's more hawkish-than-expected FOMC meeting. Treasuries and Bunds are off the lows seen in the immediate aftermath of the meeting while gilts are at their lows of the day at the time of writing. Cash curves have continued to bear steepen.

• Digestion is likely to be the theme of the day with the main data highlights the Philly Fed and US claims.
• It has been another fairly heavy morning of issuance for the Eurozone with Spain and France having already sold bonds and France also due to sell linkers shortly.
• TY1 futures are down -0-3+ today at 131-20+ with 10y UST yields down -0.9bp at 1.569% and 2y yields down -0.4bp at 0.204%.
• Bund futures are down -0.58 today at 171.95 with 10y Bund yields up 4.2bp at -0.161% and Schatz yields up 1.2bp at -0.669%.
• Gilt futures are down -0.83 today at 126.96 with 10y yields up 8.7bp at 0.826% and 2y yields up 5.7bp at 0.129%.