EGBS: Curves Bear Flatten Following US NFPs; Bund Futures Just Off Lows

Bund futures are just off intraday lows alongside USTs, but remain -78 ticks at 130.20.

• The initial move lower following the stronger-than-expected US labour market data saw a breach of the June 4 low at 130.50, though the June 1 low at 129.83 was not tested.
• The German and French cash curves have bear flattened, with the German 5s30s curve around 3bps flatter today at ~3.9bps.
• 10-year peripheral spreads to Bunds widened sharply on the release, alongside the sell-off in risk assets, but have since returned to pre-data levels, still holding wider on the day.
• ECB speakers from across the hawk-dove spectrum have continued to stick to the script seen around yesterday’s meeting i.e. refraining from providing guidance around the future rate path.
• Our review of yesterday’s ECB decision is here.