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More Muted Start, CB Speakers Eyed

EGBS
  • Following the acute volatility across bond markets last week, Monday has been somewhat calmer with equity markets mixed and moves in core fixed income more muted.
  • Across the Eurozone inflation breakevens have picked up as energy prices rise once more (with renewed concerns about Russian supply). Despite more negligible increases in breakevens in the US and UK, Bunds continue to outperform in core income space on the day.
  • Having said that, there are some interesting curve dynamics at play with the German and UK curves steepening a little, but the UST curve flattening.
  • The Monday data slate is bereft of any tier one releases, keeping focus on the busier speaker slate which includes Fed's Powell, Clarida, Harker, Bowman and Evans as well as BoE's Bailey and ECB's Lane.

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