Most Core Yields Higher On The Day

Post-BoJ impetus continues to be felt across most of the core global FI space, with little meaningful headline flow seen since and most benchmark yields a little higher on the day.

• Pricing of the long end gilt syndication is out of the way, with what seemed to be hedging-related pressure in gilt futures helping the contract through previous session lows.
• Some focus was given to the latest ECB bank lending survey (covered in greater detail elsewhere), although this didn’t have a meaningful, lasting impact.
• The Tsy curve bear steepens, the Bund curve twist steepens and the gilt curve bear flattens, with 5s leading the sell off there.
• EGB spreads to Bunds are generally little changed to a touch wider on the day.
• U.S. 2-Year Tsy supply and the dual tranche syndication from the EU provide the major points of interest on the supply front, with the broader global docket relatively limited for the remainder of the day (regional Fed economic activity indices provide the highlights).