Looking ahead to the FOMC Minutes

There has been some modest bull flattening of yield curves this morning as equities move a little higher but core fixed income is trading largely within yesterday's ranges, waiting for the FOMC Minutes later.

• European final services PMIs did little to move the market this morning with focus instead on large corporate supply as well as bond sales from Germany, Spain, Italy and Slovenia.
• The focus of the FOMC Minutes later today will be whether there will be any hints as to raising rates potentially as soon as March and any more detail about balance sheet normalization.
• TY1 futures are up 0-3+ today at 129-12+ with 10y UST yields down -0.8bp at 1.641% and 2y yields unch at 0.761%.
• Bund futures are unch today at 170.81 with 10y Bund yields down -1.0bp at -0.134% and Schatz yields down -0.3bp at -0.626%.
• Gilt futures are up 0.07 today at 124.01 with 10y yields down -1.6bp at 1.067% and 2y yields down -1.0bp at 0.743%.