February 09, 2023 10:20 GMT
Govies and Equities are trending higher
- Govies have extended gains this morning, with the initial push higher provided by the lower German inflation data.
- Futures market saw some upside continuation, helped by the bid in Equities.
- Risk On tone, has been helped by German inflation, Astrazeneca beat and FAB/Stanchart takeover talks.
- Resistance in Bund is at 137.03, printed at 136.94 high at the time of typing.
- Peripheral spread are mixed, Italy is 1.1bps tighter, while the Greek/Bund spread is 2.8bps wider.
- Gilt trades inline with EGBs and similar price action in Rate markets, with the SONIA strip trading at the upper end of its range.
- BoE Bailey, Pill, Tenreyro, Haskel are at the Treasury committee, but so far, nothing really new from Bailey's testimony, he has reiterated what he has said previoulsy.
- There's been some early divergence between Treasuries and Europe, given that EGBs have taken their cue from German data and European Equity news.
- The Tnote/Bund spread is 7bps wider, but trades within February's range.
- Looking ahead, there's no Tier 1 data, with the only notable release being the US IJC, but unlikely to really move the needle.
- ECB Nagel, de Cos and Guindos are still scheduled to speak later today.