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Some divergence

BOND SUMMARY
  • It has been a more mixed session for core fixed income this morning with Treasuries higher on the day but Bunds and gilts now largely unchanged after weak starts to the day.
  • Data this morning has seen German PPI largely in line with expectations with Philadelphia Fed and jobless claims data among the highlights for later today. The market is also looking towards tomorrow's UK retail sales data and European/UK flash PMI data.
  • TY1 futures are up 0-7+ today at 132-08+ with 10y UST yields down -2.1bp at 1.653% and 2y yields down -0.6bp at 0.152%.
  • Bund futures are down -0.19 today at 168.71 with 10y Bund yields up 1.0bp at -0.101% and Schatz yields up 0.6bp at -0.650%.
  • Gilt futures are down -0.13 today at 127.61 with 10y yields up 0.6bp at 0.853% and 2y yields down -0.3bp at 0.068%.

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