Off Cheaps, Volumes Low

The Asia/early European weakness in core global FI markets has faded, although moves remain contained.

• Core global FI futures generally trade around unchanged levels.
• The German curve bull steepens at the margin, while Tsys & gilts twist flatten a little
• That comes even with oil and global equity benchmarks off lows.
• Weakness in Chinese & HK equities helped limit downside in Asia, before that move faded into the local market closes.
• Macro news flow has been light, outside of headlines surrounding familiar areas of risk in China and Italian PM Meloni pointing to her reasoning behind the banking tax move deployed last week.
• A quick reminder that the presence of Tuesday’s Assumption Day holiday will be a limiting factor for participation in some European markets today.
• Accordingly, the bulk of observable traded volumes in benchmark Eurozone assets run below respective norms at present.

• TY1 futures are up 0-0+ today at 110-06+ with 10y UST yields up 0.5bp at 4.160%.
• Bund futures are up 0.01 today at 131.48 with 10y Bund yields down -0.6bp at 2.616%.
• Gilt futures are down -0.11 today at 93.52 with 10y yields up 0.7bp at 4.531%.