EGB/Gilt - Bund at session high, UK underperforms.

EGBs have traded in tight ranges this morning, and EU PMI services releases had very little impact.

• Bund is better bid at the time of typing, and we still eye next initial target at -0.50%, which equates to 177.24 today.
• Printed -0.491% yesterday.
• Peripheral spreads are a touch tighter, with Italy leading by 0.6bp.
• Gilts are underperforming Bund somewhat, translating into a 0.7bp wider Gilt/Bund spread.
• UK final Services PMI was revised higher, and has kept the upside in the contract in check.
• Looking ahead, US ADP and ISM Services are the notable data, while Fed Bullard and Clarida are the scheduled speakers.
• Also on the calendar, additional financing details relating to Treasury's Quarterly Refunding will be released at 8:30 ET.
• Gilt futures are down -0.02 today at 130.29 with 10y yields down -0.1bp at 0.518% and 2y yields up 1.1bp at 0.061%
• Bund futures are up 0.12 today at 177.09 with 10y Bund yields down -0.9bp at -0.492% and Schatz yields down -0.2bp at -0.778%
• BTP futures are up 0.23 today at 155.20 with 10y yields down -1.5bp at 0.550% and 2y yields down -1.0bp at -0.502%.
• OAT futures are up 0.17 today at 162.64 with 10y yields down -1.2bp at -0.147% and 2y yields down -0.3bp at -0.714%.