Moves higher continue

After a pullback after the European open, core fixed income has continued its march higher (while the curve bull flattens) and now gilts, Treasuries and Bunds all stand above yesterday's highs. All have now fully reversed any moves lower following payrolls.

• Lockdowns in the Antipodes and the political situation in Afghanistan are weighing on sentiment today.
• The data focus for today will be US retail sales (and to a lesser extent IP). We have already received UK labour market data which had something for everyone, and was largely in line with expectations while the second print of Eurozone GDP was in line with the first.
• Powell is due to speak later; markets will watch but he is not expected to say anything new on the economy. Kashkari is also due to speak.
• TY1 futures are up 0-6+ today at 134-17 with 10y UST yields down -4.0bp at 1.227% and 2y yields down -1.1bp at 0.200%.
• Bund futures are up 0.36 today at 177.16 with 10y Bund yields down -2.6bp at -0.496% and Schatz yields down -0.9bp at -0.752%.
• Gilt futures are up 0.32 today at 130.12 with 10y yields down -3.6bp at 0.537% and 2y yields down -1.9bp at 0.118%.