Off Best Levels Into NY Hours

Second-round bids in Bunds and Gilts were limited in the grander scheme of things, with both futures contracts failing to test early session highs, while the previously outlined key levels in UK & German cash 10s also held up.

• Similarly, yesterday’s highs in TY futures held during a second pre-NY test.
• The wider core global FI space has since moved away from richest levels of the session,
• Gilts outperform their major global counterparts across the curve, while Tsys are wider across most maturities.
• Cash Tsys run 1-2bp cheaper across the curve, while the UK & Bund curves twist flatten.
• Outside of the technicals, moves away from session lows in both crude oil and benchmark European gas futures would have applied some light background pressure, limiting rallies.
• Fedspeak and the previously flagged U.S. data fills the gap between now and the start of the Jackson Hole Symposium (and full schedule unveiling), with the latter taking place in Asia-Pac hours.