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Focus on CPI

BOND SUMMARY
  • After yesterday's sell-off, core fixed income markets have retraced somewhat this morning, although Treasuries, Bunds and gilts are still substantially lower than Monday's close.
  • Focus remains firmly on the US CPI data due at 13:30BST/8:30ET with analysts looking for a substantial pickup.
  • There will be a number of Fed speakers, too. Clarida is the only member who is due to explicitly discuss the economic outlook with Rosengren, Bostic and Harker all due to speak too.
  • TY1 futures are up 0-1 today at 132-15+ with 10y UST yields down -0.6bp at 1.617% and 2y yields down -0.2bp at 0.158%.
  • Bund futures are up 0.24 today at 169.69 with 10y Bund yields down -1.2bp at -0.174% and Schatz yields down -0.1bp at -0.674%.
  • Gilt futures are up 0.16 today at 127.93 with 10y yields down -1.3bp at 0.819% and 2y yields down -0.3bp at 0.056%.

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