Firmer On German State CPI Reading

Core global FI markets firm as German NRW CPI data provides a more notable than expected slowdown when compared to the wider BBG expectations for the national readings (headline CPI seen at +7.3% Y/Y & +0.7% M/M, HICP seen at +7.5% Y/Y & +0.8% M/M, per the BBG surveys). A quick reminder that NRW is the most populous German state, with the CPI reading holding 21.1% weight in the German national CPI print. Bobl & Bund futures briefly breach yesterday’s high post-data, while Schatz futures fail to do the same (all 3 of the contracts trade off their post-data peaks. State and national CPI readings from Germany will continue to filter out through the day, while Spanish CPI data (due in ~75 minutes) will also provide some interest.