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JGB TECHS

(U1) Tilted Higher

AUSSIE 10-YEAR TECHS

(U1) Uptrend Weakening

US TSYS SUMMARY

Bullard Kickstarts Reflation Unwind Theme

AUDUSD TECHS

Fresh 2021 Lows

EGB/GILT

BOND SUMMARY

European govies trade weaker this morning with price action relatively contained in core markets and the EGB periphery underperforming.

  • Gilts have lacked convincing direction this morning with yields holding within 1bp of yesterday's close.
  • It is a similar story for bunds. Last yields: 2-year -0.788%, 5-year -0.8084%, 10-year -0.617%, 30-year -0.2041%.
  • BTPs have sold off with the curve bear steepening. Cash yields are 2-5bp higher on the day with the 2s30s spread 3bp wider.
  • Supply this morning came from Germany (Schatz, EUR3.665bn) and the ESM (bills, EUR2bn).
  • Speaking earlier today, the BoE's Vlieghe indicated that the risks are skewed in the direction of further monetary stimulus and that the risks of negative rates being counterproductive is low.
  • The ECB's Hernandez de Cos will be speaking in Madrid at 1250BST.
  • It has been another quiet day for the data calendar with no tier one releases.
MNI London Bureau | +44 0203-865-3808 | bruce.jeffery@marketnews.com