Treasuries under pressure, TYM1 making new lows

Treasuries have been under pressure this morning while gilts are little changed. However, as we go into ECB week we note that Bunds are a little bit weaker while Eurozone peripheral spreads are all tighter on the day.

• There had been focus today on the last scheduled speech from BoE Governor Bailey ahead of next week's MPC meeting. The Q&A will still be watched but he did not address the recent rise in yields or say anything new in his prepared remarks.
• The TYM1 contract is at its lowest level since its launch, but 10-year cash yields have failed to move above levels seen on Friday.
• TY1 futures are down -0-15 today at 131-28 with 10y UST yields up 3.2bp at 1.600% and 2y yields up 0.8bp at 0.148%.
• Bund futures are down -0.08 today at 171.04 with 10y Bund yields up 1.3bp at -0.290% and Schatz yields up 0.6bp at -0.690%.
• Gilt futures are up 0.08 today at 128.35 with 10y yields up 0.4bp at 0.759% and 2y yields up 0.7bp at 0.097%.