Off Best Levels

Little to report when it comes to overt headline flow to drive core global FI markets away from firmest levels of the session, with the likely candidate coming in the form of sizable impending bond supply out of Italy, while bids in both e-mini & Euro STOXX equity futures will also be aiding the direction of travel.

• Cash Tsys are the most resilient of the major markets post-FOMC (flat to 3.5bp richer as the curve bull steepens), while BTP widening is apparent in the EGB space ahead of the aforementioned supply. Elsewhere, Bund futures are +10 or so, with the major cash benchmarks on that curve running 0.5-2.5bp richer (belly outperforms and long end lags). Gilt futures trade back to neutral levels, unwinding the opening gap higher, as the cash curve twist steepens (2bp of richening to 1bp of cheapening seen).