Starting to look ahead to the ECB

As equities have edged higher, core fixed income has edged lower with Bunds underperforming gilts (although there is little movement in peripheral spreads).

• No real headline drivers for the moves, but in what has been a relatively uneventful session so far the market is likely to increasingly focus on the ECB meeting later this week. Discussion points surround whether the ECB discusses what will happen to the APP when PEPP ends, the updated staff economic projections and whether GGBs will continue to remain eligible for purchase by the ECB under a revamped APP.
• TY1 futures are down -0-3 today at 133-09+ with cash closed.
• Bund futures are down -0.25 today at 172.04 with 10y Bund yields up 1.1bp at -0.352% and Schatz yields up 0.2bp at -0.719%.
• Gilt futures are down -0.15 today at 128.20 with 10y yields up 0.8bp at 0.723% and 2y yields up 0.3bp at 0.197%.