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EGBs are seeing an underlying bid

CROSS ASSET
  • Bund and EGBs have seen more limited impact from the latest Hawkish Fed Williams headlines.
  • Front ERZ3 sees over 5k bought and Bund is starting to consolidate some of that latest leg lower.
  • The 2023 low in Italian 10yr Yield has held, with BTP futures some 60 ticks off the session high.
  • US and European Equities have diverged somewhat, as Emini trades back in red territory, while Estoxx (VGH4) still holds onto gains, following the weaker European data in Early trade.

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