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Following Equities Ahead of Jackson Hole Tomorrow

BOND SUMMARY
  • Bunds and gilts are close to their lows of the days but Treasuries have recovered some weakness.
  • Equities are generally higher across Europe but US equity futures have seen smaller rallies. Fixed income is generally following risk appetite today.
  • ECB's Schnabel is due to speak at 12:30BST but the market is looking ahead to Jackson Hole tomorrow and Friday. Powell is expected to set out the Fed's medium term framework and a number of other senior central bankers globally are scheduled to speak.
  • TY1 futures are down -0-6+ today at 139-03+ with 10y UST yields up 2.9bp at 0.713% and 2y yields up 1.0bp at 0.159%.
  • Bund futures are down -0.33 today at 175.56 with 10y Bund yields up 2.8bp at -0.405% and Schatz yields up 1.5bp at -0.649%.
  • Gilt futures are down -0.33 today at 135.19 with 10y yields up 3.3bp at 0.295% and 2y yields up 1.8bp at -0.8%.

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