Mostly Bear Flatter With Fed Speakers And ADP Awaited

The US and German cash curves have bear flattened slightly in early Thursday trade, with the UK's twist steepening. Periphery EGBs are trading mixed.

• Italian Dec prelim inflation came in exactly in line with expectations, but the current survey estimate for Friday's Eurozone-wide figure is still likely too high at 9.5% Y/Y given weak readings in the likes of Germany and France.
• The BoE's monthly decision maker survey showed year-ahead CPI expectations pick up to 7.4% from 7.2% in November.
• Main attention in the rest of the session is US ADP payrolls (with an eye to Friday's employment report), weekly jobless claims, and FOMC speakers Harker, Bostic, and Bullard.

Latest levels:

• Mar US 10-Yr futures (TY) up 1/32 at 113-07 (L: 113-03 / H: 113-11.5)
• Mar Bund futures (RX) down 37 ticks at 136.1 (L: 135.81 / H: 136.34)
• Mar Gilt futures (G) down 19 ticks at 102.1 (L: 101.76 / H: 102.23)
• Mar BTP futures (IK) down 17 ticks at 112.32 (L: 111.88 / H: 112.45)