Partially retracing yesterday's rally

Core fixed income has been reversing some of yesterday's gains through the European morning session.

• There have been little in the way of headlines or macro catalysts to trigger the moves. Instead, the moves seem to purely be partial retracements of the moves following the ECB meeting and the 30-year UST auction. 2s10s curves have steepened.
• UK monthly activity data for July disappointed while IP data across the Eurozone has been mixed. The focus later today will be on US PPI while US wholesale inventories are also due.
• - TY1 futures are down -0-6+ today at 133-09+ with 10y UST yields up 2.8bp at 1.327% and 2y yields up 0.7bp at 0.220%.
• Bund futures are down -0.37 today at 171.91 with 10y Bund yields up 2.1bp at -0.341% and Schatz yields unch at -0.718%.
• Gilt futures are down -0.12 today at 127.96 with 10y yields up 1.1bp at 0.747% and 2y yields up 0.5bp at 0.226%.