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Unwinding the exuberant start

BONDS

After an exuberant start to the European session following on from a risk-on Asian session, core fixed income has now largely reversed some of the gains seen this morning.

  • There have not been too many noteworthy headlines to drive the reversal. Just as we were typing Fed's Barkin said that a March rate hike is "conceivable."
  • Volumes remain subdued as the market looks ahead to US CPI on Wednesday.
  • TY1 futures are down -0-3 today at 128-06+ with 10y UST yields up 1.3bp at 1.777% and 2y yields up 0.4bp at 0.868%.
  • Bund futures are up 0.07 today at 170.07 with 10y Bund yields down -0.3bp at -0.89% and Schatz yields up 1.0bp at -0.589%.
  • Gilt futures are down -0.02 today at 123.00 with 10y yields down -0.1bp at 1.176% and 2y yields unch at 0.819%.

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