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US CPI is in sight

BONDS
  • A very mixed and light start for Govies.
  • Volumes have been on the very low side in the first 3.5 hours of trading, since the cash open for EGBs and Bund.
  • Market have lacked direction, with most on the sideline, ahead of the awaited US CPI.
  • Price action in Gilts have also been mixed, muted.
  • Some early small tightening in the Gilt/Bund spread, after Gilts opened higher versus some of the calls.
  • But the spread has since reversed course and trade close to flat on the session.
  • Gilt and Bund trade inline.
  • US Treasuries have also been offered as local and prop desks positions ahead of the US data.
  • US curves have been mixed.
  • Although the long end underperforms, short end still lead and as such, the US 5/30s sits flatter at the time of typing.
  • Looking ahead, attention is on the US CPI

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