Steady European session

Bund has traded in a tight 20 ticks range during the morning European session.

• Despite the buying interest in risk, German curve and the long end contract are flat so far today.
• Notable price action was seen in peripheral with Portugal trading deeper in negative yield territory, followed by the Spanish 10yr and Italian 10yr yield printing a new record low at 0.43%.
• Gilt are underpinned on the GBP early weakness,
• Regarding 10yr yield UK is the next Bond still in positive territory from developed countries, printed a 0.206% low this morning.
• And for the fan of yield, 0% Yield would equate to Gilt futures at 137.69 (ref 135.25).
• US Treasuries are trading close to flat and in tight ranges, with investors awaiting on US stimulus, after Nancy Pelosi told Mnuchin that the remaining open items on the spending bill could be readily resolved.US curve is bear steeper on the margin.
• Looking ahead, US IP, ECB Lane and BoC Macklem are scheduled to speak.
• Gilt futures are up 0.29 today at 136.40 with 10y yields down -0.2bp at 0.219% and 2y yields up 1.2bp at -0.84%
• Bund futures are up 0.03 today at 178.45 with 10y Bund yields down -0.4bp at -0.625% and Schatz yields down -0.4bp at -0.781%.
• BTP futures are down -0.03 today at 152.15 with 10y yields up 0.6bp at 0.545% and 2y yields down -0.7bp at -0.454%.
• TY1 futures are down -0-5 today at 138-11 with Bund futures up 0.03 at 178.45 and Gilt futures up 0.29 at 136.40.