Lower on US strong data

EGBs have drifted lower this afternoon, following the strong US unemployment data, with the rate falling to 8.4%.

• Today saw more decoupling between Equities and core bonds, as equities moved lower.
• Some market participants lock in profit going into a long "Labour Day" weekend for the US.
• Bund are off the lows, but down 32 ticks ticks at the time of typing.
• Peripheral have generally kept pace, with the exception of the BTP, and as such the BTP/Bund spread sits 2.7bps wider today,
• Roll have again dominated volumes, but to a lesser extend, with most of the positioning pretty much done, before expiry Tuesday.
• Looking ahead, ECB Lane Chairs a lecture
• Bund futures are down -0.36 today at 176.71 with 10y Bund yields up 1.5bp at -0.475% and Schatz yields up 0.6bp at -0.706%
• BTP futures are down -0.53 today at 146.95 with 10y yields up 4.4bp at 1.017% and 2y yields up 2.5bp at -0.114%
• OAT futures are down -0.28 today at 168.59 with 10y yields up 2.0bp at -0.177% and 2y yields up 0.5bp at -0.629%.