Italian 10yr yield test new record low

EGBs are steady this afternoon, as we end the first week of the new year.

• Some knee-jerk price action on the US NFP release, with the headline missing big, but with a much higher revision.
• Tnotes and EGBs initial sold off, but the momentum was short lived, with a full reversal, with trading near the high of the session (177.53 high), now at 177.45 at the time of typing.
• Some notable moves in peripherals and particularly the BTP.
• Much better buying was seen this morning in cash and futures and the contract saw further upside traction this afternoon, testing record high, pushing yield to a new record low at -0.504%.
• As such, BTP/Bund spread is 3.8bps tighter.
• Looking ahead, Fed Clarida talks economic outlook and Mon Pol.
• Sovereign rating: DBRS Morningstar on Malta (current rating A (high), Stable Trend)
• Bund futures are up 0.17 today at 177.42 with 10y Bund yields down -0.4bp at -0.529% and Schatz yields down -0.1bp at -0.711%.
• BTP futures are up 0.53 today at 152.52 with 10y yields down -4.4bp at 0.513% and 2y yields down -1.9bp at -0.424%.
• OAT futures are up 0.18 today at 167.71 with 10y yields down -0.4bp at -0.327% and 2y yields up 0.5bp at -0.685%.