Gilts and GGBs the movers ahead of payrolls

Core fixed income is fairly subdued ahead of the US employment report due later today. Treasuries and Bunds trade within yesterday's ranges.

• Gilts are underperforming on the day, with 10-year yields hitting their highest levels since October 2021, albeit on little new news.
• Peripheral spreads across the Eurozone are all wider this morning, led by Greek spreads which are 13.2bp wider on the day relative to 10-year Bunds. There doesn't seem to be an obvious driver, with market contacts pointing to potential Greek issuance over the next couple of weeks. This seems like a bit of an outsized move to us, as Greece nearly always issues a new benchmark in January but with low liquidity this seems to be the only obvious driver.
• Payrolls are, of course, the main event of the day. See our preview here.
• TY1 futures are up 0-2+ today at 128-19+ with 10y UST yields up 0.3bp at 1.726% and 2y yields up 0.4bp at 0.872%.
• Bund futures are down -0.03 today at 170.31 with 10y Bund yields up 0.1bp at -0.104% and Schatz yields up 0.4bp at -0.604%.
• Gilt futures are down -0.03 today at 123.24 with 10y yields down -0.4bp at 1.151% and 2y yields down -1.1bp at 0.794%.