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Lower this morning

BONDS

USTs, Bunds and gilts are all lower in the European sesion this morning, although Treasuries are still above where they closed yesterday after moving higher in the Asian timezone.

  • There has been little in the way of headline drivers this morning and the market is now looking ahead to Canadian labour market data, Michigan confidence (particularly the inflation expectations component) as well as digesting more from sporadic ECB speakers' appearances. Focus will then begin to turn to any position squaring ahead of the end of the week and next week's FOMC and BOE meetings.
  • TY1 futures are up 0-4 today at 126-04+ with 10y UST yields down -0.3bp at 1.987% and 2y yields up 1.4bp at 1.712%.
  • Bund futures are down -0.06 today at 162.72 with 10y Bund yields down -0.4bp at 0.266% and Schatz yields down -0.7bp at -0.405%.
  • Gilt futures are up 0.01 today at 122.25 with 10y yields up 0.2bp at 1.524% and 2y yields up 1.1bp at 1.350%.

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