UK Spending review, FOMC Mins and US data make for a busy schedule

Core fixed income has drifted higher this morning despite equities being largely mixed and peripheral spreads tightening.

• Focus today will be on the UK Spending Review which will include new economic and fiscal forecasts from the OBR, a new gilt remit from the DMO and the results of the RPI review. The latter is important for the linker market as it is expected to formalize the phase-out of RPI with expectations for a transition around 2030 (not that the longest-dated linker matures in 2068).
• Today will also see the release of the second print of US Q3 GDP alongside claims, durable goods and personal income/spending data. GDP is arguably the least important of these with the other data giving a more timely indication of the state of the economy in October and beyond. The FOMC Minutes today will be watched for any discussion surrounding QE with Powell alluding to a lengthy discussion on asset purchases during the press conference - so any potential changes will be noteworthy.
• TY1 futures are up 0-2 today at 138-10 with 10y UST yields down -0.7bp at 0.874% and 2y yields down -0.1bp at 0.161%.
• Bund futures are up 0.07 today at 175.33 with 10y Bund yields down -0.9bp at -0.573% and Schatz yields down -0.7bp at -0.758%.
• Gilt futures are up 0.10 today at 135.03 with 10y yields down -1.4bp at 0.315% and 2y yields down -1.2bp at -0.36%.