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JGB TECHS

(M1) Bullish Focus

AUSSIE 10-YEAR TECHS

(M1) New Multi-Month Highs

AUSSIE 3-YEAR TECHS

(M1) Directional Triggers Intact

USDCAD TECHS

Approaching Major Support

US TSYS SUMMARY

Inflation Concerns Underpin Bear Steepening

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Gilts underperformed with a parallel shift in the curve Tuesday, while Bunds were basically unchanged. Periphery spreads drifted wider.

  • BTPs led the periphery widening (and the session's price action), amid today's auctions of short-term/linkers and dual-tranche USD issuance syndication, and ahead of auctions tomorrow of up to E7.25bln of BTPs / E1.25bln of CCTeu.
  • 10-Yr BTP yields fell just short of 2021 peak of 0.842% (day's high was 0.832%).
  • UK sold E6bn of 30-Yr Gilt via syndication. EIB announced a mandate for a E100mn digital bond based on the Ethereum blockchain.
  • Otherwise most attention is on the US Fed decision Wednesday.

Closing yields/10-Yr Spreads to Bunds:

  • Germany: The 2-Yr yield is up 0.1bps at -0.688%, 5-Yr is up 0.1bps at -0.599%, 10-Yr is up 0.4bps at -0.249%, and 30-Yr is up 0.4bps at 0.292%.
  • UK: The 2-Yr yield is up 1.4bps at 0.065%, 5-Yr is up 1.7bps at 0.344%, 10-Yr is up 1.8bps at 0.774%, and 30-Yr is up 1.8bps at 1.301%.
  • Italian BTP spread up 1.8bps at 107bps / Spanish spread up 1.1bps at 66.5bps