Risk event closely watched

Core Govies have started the European session better bid today, with safe haven assets favoured, Bonds and USD for FX.

• Early focus is on supplies, but these have very little impact.
• Bund are up on the session, as investors awaits for the EMA presser at 15.00GMT, regarding Astra vaccine safety.
• German curve has bull flatten, as the long end outperform, ahead of potential risk event.
• Similar price action in Gilts, with the contract underpinned, but upside here has been limited, likely on delta hedging, on heavy UK supplies, equating combined 53k Gilts.
• ALL EYES on the UK and what the regulators might decide on Astra and younger people. (no set time or day for that event so far)
• US treasuries have traded inline with EGBs, as the US gears up for Fed speakers, including Fed Evans, Barkin, Daly, all discussing the Economy, while Fed Kaplan is in a Panel hosted by UBS
• Most desk don't expect too much from the FOMC minutes, but they event will be watched nonetheless