Retracing some of yesterday's gains

Core fixed inome is moving lower this morning with no real key drivers. Bunds and gilts are largely retracing some of yesterday's rally while Treasuries have hit their lowest level in a week. Gilts lead the way lower.

• Data this morning has been mixed with final PMI prints seeing small revisions. The highlight of the data calendar will be the release of the ISM services index later today.
• There has been decent supply in Europe with E6bln of Green EU bonds being sold via syndication, GBP3.25bln of 5-year gilts, E1.495bln of 10/25-year RAGBs and E600mln of ILBs, in addition to bill from three issuers.
• Fed's Brainard, Daly and Williams are the only notable speakers today.
• TY1 futures are down -0-9+ today at 121-25+ with 10y UST yields up 5.1bp at 2.449% and 2y yields up 3.5bp at 2.459%.
• Bund futures are down -0.39 today at 158.71 with 10y Bund yields up 4.3bp at 0.546% and Schatz yields up 2.1bp at -0.69%.
• Gilt futures are down -0.47 today at 121.41 with 10y yields up 6.3bp at 1.609% and 2y yields up 6.9bp at 1.425%.