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Lower on the day

BONDS
  • Core fixed income quickly shook off spikes higher on a weaker-than-expected German IFO expectations component and is now lower than Friday's close (although still far above Thursday's closing levels).
  • Schatz have underperformed 2-year USTs while 10-year Treasuries have underperformed Bunds on the day. Gilts have seen the smallest moves.
  • Markets are already beginning to look ahead to the FOMC meeting this week, although given the sensitivity of the market to any signals of recession at present, there will probably be more attention than usual on the Chicago and Dallas Fed indices.
  • TY1 futures are down -0-5+ today at 119-23 with 10y UST yields up 6.0bp at 2.812% and 2y yields up 3.4bp at 3.006%.
  • Bund futures are down -0.55 today at 153.91 with 10y Bund yields up 4.5bp at 1.072% and Schatz yields up 5.9bp at 0.464%.
  • Gilt futures are down -0.15 today at 117.12 with 10y yields up 1.8bp at 1.954% and 2y yields up 2.0bp at 1.847%.

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