EGB/Gilt - Unwind some of the sell off

EGBs unwinds some of yesterday's sell off, which looks more corrective.

• Bund tested initial yield target at -0.18% yesterday, and yield have moved lower this morning, as the future trades back above the 170 handle.
• Volumes have once again been decent, but moves have been calmer.
• Peripheral spreads are all tighter this morning, Italy lead by 2.8bps versus the German 10yr.
• Gilts have mostly traded inline with Bunds, translating in a flat Gilt/Bund spread, but we are nonetheless still trading close to that 2019 peak at 121.01 (also widest since 2016), now at 119.1.
• Looking ahead, we no tier 1 data out of the US, and most of the focus will be on another packed session full of speakers, which today includes, ECB Centeno, Stournaras, Maklouf, Lane, Guindos, Lagarde, Elderson, Fed Powell, Daily, Bostic, and BoE Bailey
• Dec Bund futures (RX) up 37 ticks at 170.23 (L: 169.61 / H: 170.23)
• Germany: The 2-Yr yield is down 0.6bps at -0.689%, 5-Yr is down 1.5bps at -0.564%, 10-Yr is down 2.2bps at -0.221%, and 30-Yr is down 2.4bps at 0.24%.
• Dec Gilt futures (G) up 19 ticks at 125.76 (L: 125.6 / H: 125.88)
• UK: The 2-Yr yield is down 1.9bps at 0.39%, 5-Yr is down 2bps at 0.608%, 10-Yr is down 2.2bps at 0.972%, and 30-Yr is down 2.2bps at 1.303%.
• Dec BTP futures (IK) up 66 ticks at 152.63 (L: 151.88 / H: 152.66)
• Dec OAT futures (OA) up 42 ticks at 166.39 (L: 165.76 / H: 166.39)