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Treasuries slide while Bunds and gilts recover

BONDS
  • Treasuries, Bunds and gilts all remain their post-US CPI highs. Treasuries have continued to slide in overnight/early European trading while Bunds have retraced around 50% of Friday's move lower and gilts are coming close to Thursday's closing levels.
  • It's a huge week for the UK with the Autumn Statement due Thursday, labour market data tomorrow morning and inflation data due Wednesday (as well as 7/9 MPC members speaking).
  • TY1 futures are down -0-9+ today at 112-00+ with 10y UST yields up 6.6bp at 3.880% and 2y yields up 4.1bp at 4.375%.
  • Bund futures are up 0.67 today at 139.19 with 10y Bund yields down -5.9bp at 2.098% and Schatz yields down -6.5bp at 2.066%.
  • Gilt futures are up 0.64 today at 104.79 with 10y yields down -6.4bp at 3.288% and 2y yields down -6.8bp at 3.047%.

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