Some core FI divergence

There has been some divergence in core fixed income markets this morning with Bunds a bit higher, Treasuries lower and gilt largely unchanged. This can largely be equated to a fairly steady Treasuries curve but a bull steepening of European curves.

• The main event of the morning has been European PMIs which saw French data disappoint a little but German, Eurozone and UK data marginally better than expected.
• European peripheral spreads are generally tighter on the day.
• Yellen is due to testify before the Senate Appropriations committee today at 14:00ET which is worth watching, but unlikely to yield market moves. Later today we will also hear from the Fed's Bowman and ECB's Lagarde.
• TY1 futures are down -0-1 today at 132-10+ with 10y UST yields up 1.1bp at 1.476% and 2y yields up 0.6bp at 0.249%.
• Bund futures are up 0.07 today at 172.02 with 10y Bund yields down -0.5bp at -0.170% and Schatz yields down -0.2bp at -0.655%.
• Gilt futures are down -0.03 today at 127.41 with 10y yields up 0.6bp at 0.785% and 2y yields down -1.2bp at 0.092%.