Lockdown talk spooks markets

Core fixed income has moved largely in lockstep today with a bull steepening of 2s10s curves across Germany, the US and UK.

• This morning's data has consisted of slightly better than expected French confidence data and an in line ZEW while we have heard from a number of ECB speakers (who have largely not moved markets).
• The main news has instead been the Twitter rumour mill discussing whether or not there will be a lockdown in Germany following a CNBC story that discussed the options to the German government who are due to discuss today any new Covid-19 restrictions in the country.
• There are a number of US events later with the second print of Q3 GDP, preliminary durable goods orders for October, personal income/spending, PCE, weekly claims and the FOMC Minutes all due ahead of the Thanksgiving holiday tomorrow. The Minutes are likely be analysed for any discussion of what the triggers are to adjust the pace of tapering, but with a number of FOMC members having spoken since the meeting may not be as closely watched as usual.
• TY1 futures are up 0-6+ today at 129-31+ with 10y UST yields down -2.4bp at 1.644% and 2y yields down -2.8bp at 0.589%.
• Bund futures are up 0.06 today at 170.87 with 10y Bund yields down -1.7bp at -0.239% and Schatz yields down -1.6bp at -0.856%.
• Gilt futures are down -0.06 today at 125.78 with 10y yields down -1.3bp at 0.982% and 2y yields down -1.9bp at 0.565%.