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Heading North


Modi, AMLO Top Major Economy Leader Poll, Macron Last


Under Pressure


Trend Condition Remains Bearish

Reversing early losses


Core fixed income has been grinding higher in the European session but has merely been erasing some of the weakness seen overnight and on the open. European peripheral spreads are generally tighter this morning, led by Italy.

  • Focus in the European morning session has focused on supply with France, Spain and the UK all coming to the market to sell via auction.
  • The only noteable economic data in the European session was German factory orders which came in in line with expectations.
  • Looking ahead focus will turn to the Accounts of the March ECB meeting and speeches from Fed members. Chair Powell is due to take part in an IMF panel on the global economy at 17:00BST/12:00ET, Bullard will speak at 16:00BST/11:00ET and Kashkari at 19:00BST/14:00ET.
  • TY1 futures are up 0-00+ today at 131-27 with 10y UST yields down -2.5bp at 1.650% and 2y yields down -0.4bp at 0.150%.
  • Bund futures are up 0.20 today at 171.87 with 10y Bund yields down -0.6bp at -0.331% and Schatz yields down -0.7bp at -0.716%.
  • Gilt futures are up 0.03 today at 128.23 with 10y yields up 0.9bp at 0.781% and 2y yields up 0.3bp at 0.061%.