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USDCAD TECHS

Approaching Major Support

US TSYS SUMMARY

Inflation Concerns Underpin Bear Steepening

AUDUSD TECHS

Bullish Theme

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European government bonds have broadly traded sideways through the day and have failed to claw back the losses posted earlier in the session.

  • The gilt curve has bear steepend with the 2s30s spread 3bp wider.
  • Bund yields are now 1-2bp higher with the curve 1bp steeper.
  • OATs similarly remain a touch weaker on the day. Last yields: 2-year -0.6636%, 5-year -0.5609%, 10-year -0.0199%, 30-year 0.8313%.
  • BTPs trade in line with core EGBs, with the longer end of the curve slightly underperforming.
  • The UK and EU today pledged to work together in calming tensions in Northern Ireland following the recent spate of rioting.
  • Focus next week will be the ECB Governing Council meeting on Thursday and any additional clarity on the roll out of the Johnson & Johnson Covid vaccine.