Futures Coil Overnight, ECB Speak Due

Softer than expected Y/Y Chinese GDP data, weaker Chinese equities and another downtick in crude oil prices provided background support for Bund futures overnight, leaving the contract little changed vs. Friday’s settlement through the old futures open, with a narrow 10 tick range in play (a Japanese holiday and HK equities will have limited further cross-market impetus).

• The weekend didn’t see much in the way of tier 1 regional news flow, with most of the Asia-Pac focus falling on Chinese GDP, along with the monthly economic activity indicators from the same country and U.S. Tsy Secretary Yellen pushing back on the idea of looser trade restrictions vs. China (despite positive musings surrounding her recent Beijing trip).
• Final Italian CPI & ECB speak from Lagarde, Lane, Elderson & Vujcic will filter out through Monday’s session.
• On the ECB front, BBG released their latest survey of economists this morning, noting that “the ECB will boost borrowing costs to a peak of 4% in September,” marginally more aggressive than the ~3.91% currently priced into ECB-dated OIS
• We aren’t scheduled to get anything in the way of meaningful EGB supply today. You can see more on that front in our weekly EGB issuance piece, here.