EGB/Gilt - Curves lean flatter ahead of US CPI tomorrow

A more steady session to start the week, with generally lower volumes and EGBs trading in range.

• This is not too surprising as investors sits on the sideline ahead of a busy week, that includes heavy supplies, Data and speakers.
• Curve are bull flatter on the margin, while peripherals are trading tighter against the German 10yt.
• Italy leads by 3.1bps.
• Similar price action for the UK and Gilts, with curve trading bull flatter and the UK/Bund spread is 0.9bp tighter.
• Looking ahead, sees ECB de Guindos, Fed Kashkari, and UK Boris Johnson presser when he is expected to lift most restrictions on the 19th July.
• All the attention though, turns to tomorrow and the US inflation data.
• Gilt futures are up 0.21 today at 128.98 with 10y yields down -1.6bp at 0.639% and 2y yields down -0.5bp at 0.077%.
• Bund futures are up 0.18 today at 174.08 with 10y Bund yields down -0.7bp at -0.301% and Schatz yields unch at -0.681%
• BTP futures are up 0.54 today at 152.76 with 10y yields down -4.2bp at 0.721% and 2y yields down -1.4bp at -0.398%
• OAT futures are up 0.22 today at 160.21 with 10y yields down -1.3bp at 0.039% and 2y yields up 0.2bp at -0.642%.