Moving mildly higher

Core fixed income is drifting higher this morning with gilts the outperformers. Indeed, Treasuries and Bunds remain within yesterday's ranges at the time of writing but gilts have broken above to the highest levels since Monday.

• There's not a huge amount of headline drivers for the price action. UK retail sales were a bit weaker than expected while Spanish PPI was at its higher level since the series began in 1976.
• The main headline of the day has been the announcement that the EU and US have agreed a deal to import 15BCM of LNG in 2022 to reduce the EU's reliance on German imports. However, this still leaves the EU hugely reliant upon Russian imports, so hurts Russia a little but doesn't really change the narrative.
• Looking ahead we are due to hear from Fed's Williams, Barkin and Waller as well as Bank of Canada's Kozicki.
• TY1 futures are down -0-1 today at 122-28+ with 10y UST yields down -3.3bp at 2.341% and 2y yields down -0.4bp at 2.137%.
• Bund futures are up 0.21 today at 159.47 with 10y Bund yields down -2.6bp at 0.503% and Schatz yields down -1.3bp at -0.221%.
• Gilt futures are up 0.35 today at 121.43 with 10y yields down -4.6bp at 1.599% and 2y yields down -3.3bp at 1.305%.