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Looking for Direction Ahead of Tomorrow's FOMC Minutes

BOND SUMMARY
  • Core bonds have ground higher this morning but have come off of their highs to be only marginally stronger than yesterday's close.
  • There continue to be few market moving headlines with markets looking for more Covid clarification ahead of the next key scheduled event - tomorrow's FOMC Minutes.
  • US housing starts are the only data of note today.
  • TY1 futures are up 0-2 today at 139-12+ with 10y UST yields down -1.6bp at 0.673% and 2y yields unch at 0.152%.
  • Bund futures are up 0.19 today at 176.40 with 10y Bund yields down -1.1bp at -0.464% and Schatz yields down -0.4bp at -0.669%.
  • Gilt futures are up 0.06 today at 137.09 with 10y yields down -0.1bp at 0.214% and 2y yields up 0.7bp at -0.40%.

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