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Unscheduled ECB meeting dominates morning session (2/2)

BONDS
  • UST and gilts have rallied more than the German curve with a parallel moves in USTs and a more mild steepening in the gilt curve.
  • Other than the ECB meeting, focus will be on US retail sales and Fed later. Our updated Fed preview is available here.
  • The EU has also announced this morning that it is re-starting legal action against the UK over the Brexit bill and NI protocol.
  • TY1 futures are up 0-14+ today at 114-27+ with 10y UST yields down -5.8bp at 3.418% and 2y yields down -5.9bp at 3.373%.
  • Bund futures are down -0.62 today at 142.97 with 10y Bund yields down -0.9bp at 1.742% and Schatz yields down -5.7bp at 1.163%.
  • BTP futures are up 1.62 today at 116.23 with 10y yields down -23.0bp at 3.941% and 2y yields down -24.1bp at 1.881%.
  • Gilt futures are up 0.10 today at 112.01 with 10y yields down -5.8bp at 2.527% and 2y yields down -8.1bp at 2.015%.

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