EGB/Gilt - Attention turns to the FOMC

EGBs have traded within this morning's ranges, and while Bund is still up on the session, contracts look better offered at the time of typing, ahead of the FOMC.

• German curve has consolidated some of this morning flattening bias, but we are still in the tight range of this past week (77.469/73.86).
• Peripheral spreads are wider, with Spain by 1.1bp on the session.
• Gilts are also underperforming versus Germany, with some reversal in the curve.
• 5/30s was bull flatter this morning, but now bear steeper this afternoon.
• And the Gilt/Bund spread has widened by 2.7bps, and widest since the 6th May, now at 102.289bps
• Looking ahead, all the attention now turns to the FOMC and Fed Powell's presser
• Gilt futures are down -0.05 today at 129.68 with 10y yields up 1.7bp at 0.574% and 2y yields up 1.0bp at 0.080%.
• Bund futures are up 0.16 today at 176.42 with 10y Bund yields down -0.8bp at -0.450% and Schatz yields down -0.9bp at -0.758%.
• BTP futures are up 0.07 today at 154.24 with 10y yields up 0.1bp at 0.623% and 2y yields down -1.0bp at -0.452%.
• OAT futures are up 0.01 today at 161.84 with 10y yields up 0.5bp at -0.85% and 2y yields down -0.6bp at -0.711%.