Little Changed Wednesday Following Schnabel FT Interview

Core/semi-core EGB futures are a touch firmer Wednesday morning, though remain off intraday highs following ECB Schnabel's interview with the FT published this morning.

• Schnabel reiterated that the "last-mile" of bringing inflation to target "remains a concern", and emphasised the Eurozone's "worrying" recent decline in productivity, which has pushed up labour costs.
• In an interview recently published by MNI's Policy Team, ECB's Simkus noted that the central bank could begin easing in April or June (see here).
• Bunds are +10 at 134.34 at typing, around 25 ticks shy of pre-Schnabel highs but comfortably within yesterday's range. Initial resistance is at 134.90, the 20-day EMA. German 7-year supply is due at 1030GMT.
• OAT and BTP futures are also a touch higher today, while yields are little changed.
• Peripheries have broadly tracked Bunds, leaving 10Y spreads flat to 0.5bp narrower.
• This morning's data docket was highlighted by German industrial production, which came in below consensus but also saw upward revisions to last-month’s data.
• The remainder of today's docket is quiet, with a slate of afternoon Fed-speak potentially garnering cross-border interest.