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Trading bull flatter since the open

BUNDS

Decent pick up in early volumes since the cash open across the long end strip.

Majority of the volume is all spread related.

  • Curve is flat, leaning bull flatter.
  • Steepeners have been favoured in the last couple of days, as the medium, longer term outlook improves (US stimulus, vaccine rollouts), although the major sticking point of Brexit still remains.
  • Focus today sees some final European Service PMI reading, but focus is squarely on Brexit as the window of opportunity closes.
  • No speakers are schedule, while in supplies sees French 10/15/20/30yr, which will be the highlight this morning

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