Softer Following Hawkish Fed/BoE Speakers; Strong USD

Core/semi core EGBs are softer this morning, as hawkish comments from Fed's Waller and BoE's Haskel and notable morning USD strength have weighed on the space. A reminder that French and Italian flash March inflation prints are due tomorrow morning.

• Softer-than-expected German retail sales eased some pressure morning, but the downward trend has persisted.
• The remainder of this morning's data releases (in line German unemployment at 5.9%, Italian sentiment and higher-than-expected Eurozone M3 money supply) were not market movers.
• Comments from ECB's Panetta were in line with his dovish leanings, but did not deviate significantly from the status quo (i.e. June being the likely start date of the cutting cycle). Villeroy speaks later today at 1730GMT.
• Bunds are -25 ticks at 133.12, falling back within yesterday's range and trading flat on the week.
• The German and French cash curves have bear flattened today. See our earlier post for more on OAT widening vs EGBs this week.
• 10-year peripheral spreads to Bunds are wider, with the BTP/Bund spread 2.7bps wider at 134.8bps.
• Portuguese and Belgian flash March inflation are also scheduled for release today.