Eyeing ISM later

We have seen similar price action to yesterday's session with Bunds (and gilts) falling around the European open, but both have made up much of the losses with Bunds close to flat on the day but gilts still a bit lower. Treasuries are off their lows of the days but still lower on the day.

• The morning session has seen the first release of PMI manufacturing data from both Spain and Italy and final release data for France, Germany, the Eurozone and UK. PMI data across the board was generally in line with expectations. This morning has also seen flash Eurozone inflation for May, which has come in one tenth above expectations while Italian Q1 GDP data was revised higher.
• Looking ahead ISM manufacturing will be the highlight of the day.
• TY1 futures are down -0-5+ today at 131-24+ with 10y UST yields up 1.7bp at 1.613% and 2y yields up 0.5bp at 0.148%.
• Bund futures are up 0.08 today at 170.02 with 10y Bund yields unch at -0.188% and Schatz yields up 0.4bp at -0.665%.
• Gilt futures are down -0.12 today at 127.13 with 10y yields up 1.0bp at 0.804% and 2y yields down -0.2bp at 0.055%.