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Looking ahead to US retail sales

BONDS
  • Core FI has drifted lower and there has been a busy morning of trading, but the moves in FI have been less noteworthy than the moves in USDJPY.
  • The moves lower in bonds correspond to moves lower for the Eurodollar and short sterling strips, but the Euribor strip has remained fairly steady on the day.
  • US retail sales and Michigan confidence will be in focus later.
  • TY1 futures are down -0-6 today at 131-10 with 10y UST yields up 3.8bp at 1.550% and 2y yields down -0.1bp at 0.360%.
  • Bund futures are down -0.34 today at 169.31 with 10y Bund yields up 3.2bp at -0.160% and Schatz yields up 0.9bp at -0.705%.
  • Gilt futures are down -0.39 today at 124.68 with 10y yields up 5.0bp at 1.091% and 2y yields up 4.1bp at 0.548%.

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