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EGBs: Looking ahead to Lane

BONDS
  • EGBs are still lower across the board, but 10y yields have moved off their earlier highs as European natgas prices have continued their move lower (with the latter now 20% off the highs).
  • Rather than the curve having seen a parallel move, curves are now bull flatter on the day by a couple of basis points.
  • ECB Chief Economist Philip Lane will appear on a panel at 14:00BST / 15:00CET entitled "High Inflation and Other Challenges for Monetary Policy." His comments will be closely watched after the ECB sources story from Reuters on Friday afternoon that stated some policymakers want to discuss a 75bp hike at the upcoming September monpol meeting.
  • Bund futures are down -1.42 today at 148.54 with 10y Bund yields up 10.8bp at 1.494% and Schatz yields up 12.5bp at 1.093%.
  • BTP futures are down -1.03 today at 120.47 with 10y yields up 9.5bp at 3.786% and 2y yields up 13.9bp at 2.046%.
  • OAT futures are down -1.13 today at 138.37 with 10y yields up 10.0bp at 2.114% and 2y yields up 11.9bp at 0.913%.

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