Firmer & A Touch Steeper

Bunds continue to richen away from session cheaps, eating into yesterday’s cheapening move in the process, even with EUR 5y5y inflation-linked swaps consolidating their move above 2.60%. The move comes alongside a bid away from session lows in European equities and U.S. e-mini futures, although equities remain comfortably lower on the day. Well-received German supply will be factoring into price action. German cash benchmarks run 5-7bp richer, with the belly outperforming, while Bund futures now sit +60 or so on the day, just shy of recent session highs. This morning saw the 2s10 curve move to the least inverted level since early June, before edging back, while the 5s30s curve briefly looked through the late July highs.