Light Selling As NY Filters In

Light selling creeps into core global FI markets as NY participants filter in and react to Fedspeak & ECB rhetoric from over the long weekend, in addition to eyeing up comments from Fed Governor Waller later today.

• Crude oil and European natural gas futures have ticked higher, although the geopolitical angst driving the former muddies any feedthrough/inference for bond markets.
• TY futures tested Friday’s pre-PPI base, while cash Tsy yields are 6.0-7.5bp higher on the day.
• Multi-tranche US$ issuance from J.P.Morgan has been announced post-earnings.
• German Bund futures tilted back towards lows of the day, although bears failed to challenge that marker, with yields there sitting flat to 1bp firmer on the session.
• 10-Year EGB spreads to Bunds are generally little changed to incrementally tighter on the day.
• Gilt bears fail to force a challenge of session lows in futures, while yields there are 2.5bp lower to 1.5bp higher as the curve twist steepens.