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Have extended lower this morning

BONDS
  • A light trading session for Govies as we head into Christmas.
  • Bonds have nonetheless been under pressure, as well as Rate futures markets.
  • Gilt has led futures lower in turn pushing the Gilt/Bund spread wider, by 3.3bps.
  • Small outperformance in Treasuries futures, is still pushing the Tnote/Bund spread tighter.
  • Support is seen at the 13/10/20 low, 128.28bps.
  • Most UK Markets will be closing between 12.00 and 13.00GMT.
  • Looking ahead, US, PCE core deflator, prelim Durable Goods, while Michigan will be final reading.
  • Gilt futures are down 50 today at 100.58 with 10y yields up 5.0bp at 3.637% and 2y yields up 4.5bp at 3.622%.
  • Bund futures are down -0.38 today at 134.93 with 10y Bund yields up 2.8bp at 2.385% and Schatz yields up 4.8bp at 2.588%.
  • BTP futures are down -0.33 today at 110.50 with 10y yields up 2.9bp at 4.497% and 2y yields up 2.6bp at 3.109%.
  • OAT futures are down -0.37 today at 129.18 with 10y yields up 3.1bp at 2.925% and 2y yields up 5.6bp at 2.570%.

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