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Looking ahead to Thursday

BOND SUMMARY

Core fixed income has been under a little pressure this morning, but markets are already starting to focus on events later this week with US CPI and the ECB monetary policy decision on Thursday both key events for the market.

  • Today's calendar is a little light with the main releases having been German factory orders which was a bit softer than expected and Spanish industrial production which was a bit stronger.
  • The only notable issuance is from EFSF which is selling a 3-year bond via syndication with a size of E2.5bln (upsized from E2.0bln). The US, Germany, the Netherlands and France all look to issue bills today.
  • TY1 futures are down -0-5 today at 132-01+ with 10y UST yields up 2.5bp at 1.580% and 2y yields up 0.4bp at 0.152%.
  • Bund futures are down -0.21 today at 171.73 with 10y Bund yields up 1.4bp at -0.200% and Schatz yields up 0.3bp at -0.673%.
  • Gilt futures are down -0.21 today at 127.08 with 10y yields up 2.2bp at 0.811% and 2y yields up 1.2bp at 0.076%.

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