EGB/GILT SUMMARY- Holding onto gains

EGBs are holding onto gains, with a small pop higher in US treasuries, following the US services PMI miss.

• Despite contract being up and the long end outperforming, curves are actually leaning bull steeper, as the short end keeps pace.
• German 5/30s is short of yesterday's high at 88.137, now at 88.152.
• Peripherals have kept up pace with the German 10yr and as such are mostly trading flat on the session.
• Gilts have lagged EGBs, in turn pushing the Gilt/Bund spread wider today, by 1.6bps.
• And although the UK curve also lean steeper, the underperformance of Gilts has translated into a bear steeper curve , as oppose to what we see in Germany (bull steeper).
• Looking ahead, we still have a few speakers, that will include ECB Lagarde and Fed Bostic (systemic racism), Rosengren (on Economy)
• Bund futures are up 0.26 today at 172.21 with 10y Bund yields down -1.7bp at -0.182% and Schatz yields down -0.6bp at -0.659%.
• BTP futures are up 0.14 today at 150.64 with 10y yields down -1.9bp at 0.879% and 2y yields down -0.5bp at -0.327%
• OAT futures are up 0.21 today at 158.62 with 10y yields down -1.8bp at 0.151% and 2y yields down -1.1bp at -0.648%
• Gilt futures are unch today at 128.47 with 10y yields up 0.1bp at 0.780% and 2y yields down -2.4bp at 0.080%.