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Marginal Bear Steepening Early, With FX Moves Shrugged Off

BONDS
There have been some notable upside breaks in Cable and EURUSD the last 30 minutes, but you wouldn't know it by looking at the rates space which hasn't done a great deal this morning.
  • ECB and BoE tightening expectations are flat (less than a bp change in hike paths this morning, peaks seen at 3.59% and 4.65%).
  • Slightly softer inflation expectations in the ECB's latest consumer survey didn't move the needle.
  • Bunds and Gilts are a little weaker (10Y yields >2-3bp higher), with supply potentially weighing, and curves marginally bear steepening.
  • Light futures volumes seen thus far, with front Bund just now going through 100k and Gilt 20k.
  • EU PPI (1000UK) and and BOE's Tenreyro (1015UK) are next up on the docket.

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