Steady ahead of ECB

A tight range session for EGBs, with supplies from Spain and France in focus this morning.

• Bund trades a touch in the red, weighted by delta hedging.
• German curve trades flat, albeit leaning bear steeper, while peripherals are faring better, and trading tighter against the German 10yr.
• Greece leads and trades 4.9bps tighter.
• Gilts are better offered today, with the main early story for the UK, the strength of the British Pound, extending to highest levels since May 2018 versus the USD.
• This is weighing on the contract as well as the GBP3.25bln of the 0.125% Jan-24 gilt .
• US Treasuries have stayed within the overnight tight ranges, albeit just a touch in the Green, after some small unwind from the highs in Equities, with risk sentiment buoyed by US stimulus hopes.
• Looking ahead, ECB rate decision and presser, although likely to be a non event.
• On the data front, US IJC will be the highlight.
• Bund futures are down -0.10 today at 177.35 with 10y Bund yields up 0.6bp at -0.524% and Schatz yields up 0.3bp at -0.710%.
• BTP futures are up 0.05 today at 151.40 with 10y yields down -0.8bp at 0.610% and 2y yields down -1.1bp at -0.336%.
• OAT futures are down -0.09 today at 167.33 with 10y yields up 0.4bp at -0.300% and 2y yields down -0.3bp at -0.627%.
• Gilt futures are down -0.09 today at 134.23 with 10y yields up 0.4bp at 0.304% and 2y yields up 0.6bp at -0.117%.
• TY1 futures are unch today at 136-31 with 10y UST yields up 0.5bp at 1.086% and 2y yields up 0.2bp at 0.130%.