Higher, but still below Tuesday's highs

Given the moves lower in European equity indices this morning it is perhaps surprising that futures of Treasuries, Bunds and gilts all remain lower than their Tuesday highs

• There has been an underlying risk-off tone to markets this morning, but there have not been any real new triggers - more resumption of Afghan and Covid-19 concerns. Curves have bull flattened.
• There has been no tier 1 data this morning with the most notable data later today US Philadelphia Fed Business Outlook Survey and US weekly jobless claims data.
• In terms of supply today have have already seen France sell E7bln of MT OATs with E0.5-1.0bln of French linkers due while there is a reopening of the 30-year UST Bond later today for USD8bln.
• TY1 futures are up 0-12 today at 134-16+ with 10y UST yields down -3.8bp at 1.222% and 2y yields down -1.4bp at 0.202%.
• Bund futures are up 0.30 today at 177.22 with 10y Bund yields down -1.6bp at -0.499% and Schatz yields down -0.4bp at -0.752%.
• Gilt futures are up 0.40 today at 130.22 with 10y yields down -3.7bp at 0.528% and 2y yields down -2.8bp at 0.107%.