Fixed income comes off the highs

It's been a busy morning again for fixed income, with core fixed income continuing to come off of its highs here with risk recovering as equities continue and oil also push higher.

• It's a very light calendar for the rest of the day with the only data coming earlier this morning in the form of UK public finance data (which came in a bit better than expected by the OBR). Italian industrial sales were a little lower on the month.
• Ahead of tomorrow's ECB meeting, the market is likely to stay focused on developments with the delta variant globally and how much risk to the economic recovery that poses.
• TY1 futures are down -0-7+ today at 134-14 with 10y UST yields up 2.7bp at 1.251% and 2y yields up 0.3bp at 0.205%.
• Bund futures are down -0.32 today at 175.53 with 10y Bund yields up 1.6bp at -0.396% and Schatz yields up 0.3bp at -0.715%.
• Gilt futures are down -0.33 today at 129.57 with 10y yields up 1.9bp at 0.582% and 2y yields down -0.3bp at 0.084%.