German curve outperforming

Core fixed income is all under some pressure this morning with US and German curves flattening (while the gilt curve has seen another parallel shift.

• Schatz and Bunds have seen larger moves than corresponding Treasuries, in contrast to moves in recent days. This is despite the Eurodollar strip moving more than the Euribor strip today, but suggests the German curve is playing catch up with moves in the Treasury curve seen over recent days.
• TY1 futures are down -0-2+ today at 130-18+ with 10y UST yields up 0.9bp at 1.445% and 2y yields up 2.6bp at 0.659%.
• Bund futures are down -0.32 today at 174.41 with 10y Bund yields up 1.8bp at -0.373% and Schatz yields up 3.3bp at -0.730%.
• Gilt futures are down -0.19 today at 126.94 with 10y yields up 2.3bp at 0.754% and 2y yields up 2.3bp at 0.477%.