Russia-US concerns drive core FI higher

Russia-US concerns over Ukraine have driven core fixed income higher today with the UK and German curves moving in lockstep higher while the Treasury curve has seen smaller moves (potentially less affected as it is further from Ukraine both geographically and economically).

• US Secretary of State Blinken and Russian Foreign Minister Lavrov have begun their meeting today but expectations of ay breakthrough agreements are low with Russia awaiting Biden and NATO's written responses to the security guarantees.
• The other big event of the day will be a speech by BOE's Mann at 13:00GMT / 8:00ET. With the exception of only limited comments from Bailey ahead of the TSC earlier this week, we have not really heard from any MPC members since the December hike. Despite this markets are pricing almost a 90% probability of a February hike. Her comments today will therefore be closely followed.
• TY1 futures are up 0-11+ today at 128-02 with 10y UST yields down -1.8bp at 1.788% and 2y yields down -0.4bp at 1.023%.
• Bund futures are up 0.44 today at 170.18 with 10y Bund yields down -3.2bp at -0.59% and Schatz yields down -2.2bp at -0.607%.
• Gilt futures are up 0.29 today at 122.95 with 10y yields down -3.0bp at 1.194% and 2y yields down -2.2bp at 0.867%.