Germany/US trade tighter

A calm start for EGBs with all the focus on the US CPI tomorrow.

Bund has stuck in a 25 ticks range (171.62/171.87).Risk remains tilted to the downside, with an unchanged initial target at the -0.298% yield level. Reference 171.83, would equate to 171.35 today.

Peripherals are a touch wider to flat on the session.

Gilts are mostly trading inline with Bund, albeit a 0.7bp tighter in early trading.

US Treasuries are trading flatter this morning, with US 5/30s, drifting below the September low.

Next sees the August low at 106.706, also the flattest level since 24/08/20, with the low on that day at 106.027, the latter is seen as the initial area of interest.

Looking ahead, we have no tier 1 data for the session, out of the US sees August budget statement, ECB Lagarde is the notable speaker left for the session.

Dec Bund futures (RX) down 6 ticks at 171.82 (L: 171.62 / H: 171.87)

Germany: The 2-Yr yield is down 0.1bps at -0.705%, 5-Yr is down 0.4bps at -0.642%, 10-Yr is down 0.4bps at -0.334%, and 30-Yr is unchanged at 0.158%.

Dec Gilt futures (G) down 5 ticks at 127.97 (L: 127.78 / H: 128.02)

UK: The 2-Yr yield is down 1bps at 0.223%, 5-Yr is down 1.1bps at 0.409%, 10-Yr is down 1.1bps at 0.747%, and 30-Yr is down 1.7bps at 1.061%

Dec BTP futures (IK) up 8 ticks at 153.95 (L: 153.73 / H: 153.98)

Dec OAT futures (OA) down 1 ticks at 168.28 (L: 168.09 / H: 168.31)