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Markets awaits Lagarde and Biden

BONDS
  • A more stable session for EGBs and Bund, after a fast market week.
  • Investors and market participants are on sideline, with all the attention turning to ECB Lagarde and US President Biden, both speaking at 14.00GMT.
  • ECB's Lagarde speaks after Eurogroup meeting in Paris.
  • The President meets with fellow NATO Heads of State and Government in an extraordinary virtual summit to discuss the security situation in and around Ukraine.
  • Bund and EGBs are a touch in the red, Bund is down 12 ticks, while peripheral spread are tighter this morning,.
  • Greece lead by 3.3bps.
  • Some divergence between UK Gilt and Europe, contracts are offered in Europe, while bid for Gilt.
  • Gilt is up 16 ticks and the Gilt/Bund spread is 2.3bps tighter.
  • Similar colour for Treasuries, they too are holding onto gains, but most of the volumes have been on the spread, which are very close to completion.
  • Looking ahead, US PCE core deflator, and Durable Goods. Michigan is final reading.
  • But all the attention is on Lagarde and Biden.

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