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Moving on up

BONDS
  • Fixed income has been moving higher this morning with a number of triggers: positioning ahead of the Fed/BoE, a stabilisation in EGB peripheral spreads (particularly BTPs) after spreads broke higher following last week's ECB meeting, the reaction to the RBA and some concern about Covid cases closing some schools in Beijing.
  • While bond futures remain near their highs of the days, there have also been decent moves higher in STIR. Euribor Reds/Greens are leading the way higher, up over 10 ticks today. The short sterling strip is up around 8 ticks through the Reds while Eurodollar Reds are up 6-8 ticks.
  • TY1 futures are up 0-7+ today at 130-28+ with 10y UST yields down -0.5bp at 1.552% and 2y yields down -2.8bp at 0.473%.
  • Bund futures are up 0.70 today at 168.85 with 10y Bund yields down -3.5bp at -0.139% and Schatz yields down -4.1bp at -0.680%.
  • Gilt futures are up 0.52 today at 125.17 with 10y yields down -3.7bp at 1.022% and 2y yields down -3.5bp at 0.649%.

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