Slightly On Back Foot With Key Data Ahead

Global core FI is on the back foot early Thursday, with Bunds underperforming ahead of a significant set of data points to end the week.

• The weaker tone has come against a backdrop of equities bouncing slightly from Wednesday's lows.
• Implied ECB hikes have ticked a little higher, but German short-end weakness (and bear flattening) has proved short-lived.
• Overall price action has been fairly limited, with key Euro CPI data awaited Friday, as well as month-end.
• Today's US data includes jobless claims, and the first read of Q1 GDP. Later, we get pending home sales and KC Fed manufacturing.
• Today also sees the last Treasury coupon auction before next week's quarterly refunding announcement, with $35B in 7Y Note for sale.

Latest levels:

• Jun US 10Y futures (TY) down 6.5/32 at 115-11 (L: 115-6.5 / H: 115-17.5)
• Jun Bund futures (RX) down 43 ticks at 134.56 (L: 134.19 / H: 134.87)
• Jun Gilt futures (G) down 27 ticks at 101.33 (L: 101.05 / H: 101.44)
• Italy / German 10-Yr spread 0.6bps wider at 188.1bps