Oil lower, fixed income higher

Core fixed income has seen a decent start to the morning, with Treasuries, Bunds and gilts close to (but not yet surpassing) their highs of Friday's session.

• The moves higher for fixed income coincide with crude oil falling around $1/bbl, but equity markets are more mixed this morning. Eurozone peripheral spreads are generally tighter, with the exception of Greece.
• In a day light on data, there will be a focus on UST supply later with 3-year and 10-year notes being auctioned alongside 6-month and 3-month bills.
• Looking ahead to later in the week, US CPI tomorrow is the highlight while the US will also see releases of PPI and the Beige Book (Wed), Philly Fed, weekly claims and IP (Thurs) with retail sales Friday. The UK also sees inflation data Wednesday and labour market data Thursday.
• TY1 futures are up 0-5 today at 133-18+ with 10y UST yields down -2.9bp at 1.332% and 2y yields down -0.7bp at 0.208%.
• Bund futures are up 0.31 today at 174.21 with 10y Bund yields down -1.6bp at -0.310% and Schatz yields down -0.2bp at -0.683%.
• Gilt futures are up 0.31 today at 129.08 with 10y yields down -2.6bp at 0.629% and 2y yields down -1.2bp at 0.070%.