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Risk-on start to the week

BONDS
  • Risk-on start to the week with US/European equity futures moving higher while core government bonds move lower.
  • There has been some divergence in STIR markets this morning with the short sterling and Eurodollar strips shifting lower but the Euribor strip shifting higher.
  • With parts of Europe out this morning for All Saints Day, the focus is on the final print of the UK PMI and the US ISM manufacturing.
  • It's a busy week for central banks with the Fed and the BoE headlining.
  • TY1 futures are down -0-6+ today at 130-16 with 10y UST yields up 3.1bp at 1.586% and 2y yields up 1.3bp at 0.512%.
  • Bund futures are down -0.09 today at 168.03 with 10y Bund yields up 1.8bp at -0.89% and Schatz yields down -0.9bp at -0.624%.
  • Gilt futures are down -0.37 today at 124.55 with 10y yields up 5.2bp at 1.084% and 2y yields up 2.7bp at 0.728%.

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