Unexplained minor divergence

Bunds and gilts are higher on the day, but Treasuries lower. All are within yesterday's trading range but there is little in the way of explanation for the divergences across the Atlantic.

• In Europe, there seems to be focus on the delta variant and increasing Covid-19 cases across the region, with peripheral spreads generally widening a bit too
• The main focus for the day ahead will be the release of US retail sales data for June while there will will also be attention paid to Michigan inflation expectations data.
• TY1 futures are down -0-7 today at 133-18+ with 10y UST yields up 3.0bp at 1.330% and 2y yields up 0.8bp at 0.233%.
• Bund futures are up 0.20 today at 174.78 with 10y Bund yields down -0.9bp at -0.344% and Schatz yields down -0.4bp at -0.686%.
• Gilt futures are up 0.24 today at 128.90 with 10y yields down -1.6bp at 0.647% and 2y yields down -1.2bp at 0.128%.