Moves Remain Limited Into Jackson Hole

A light uptick from session cheaps in Tsys seems to limit a relatively low conviction round of cheapening in both Bunds and Gilts.

• Both the German & UK benchmark fixed incomes futures contracts have registered fresh session lows, with relatively limited forays below previous bases observed before the tick away from worst levels.
• Cash Tsys run 1bp cheaper to 0.5bp richer, twist flattening, while both the UK (benchmarks flat to 4bp cheaper) & German (benchmarks 4.0-5.5bp cheaper) curves bear flatten.
• Headline flow has been fairly limited, outside of Chinese economic & equity support matters and ECB source reports from ourselves and RTRS.
• Participants remain focused on the impending event risk out of Jackson Hole.