US curves most inverted for over a decade

Divergence between USTs, Bunds and gilts in the Asian session saw the UST curve sell-off with 2s10s which overnight reached a low of-9.5bp, the most inverted level since 2006. US 5s30s went even further, themost inverted since September 2000, hitting a low of 15.2bp overnight. Through the European session we have seen Bunds, Treauries and gilts all drift higher.

• Treasuries remain below Friday's close but gilts and Bunds have both surpassed this.
• The main event of the day will be a speech from BOE MPC member Cunliffe, in what are expected to be his first public remarks on monpol since voting to keep rates on hold at the March meeting.
• We also have US factory orders and the final print of durable goods.
• TY1 futures are down -0-5 today at 122-02+ with 10y UST yields up 0.8bp at 2.393% and 2y yields down -0.6bp at 2.453%.
• Bund futures are up 1.06 today at 159.41 with 10y Bund yields down -5.6bp at 0.497% and Schatz yields down -3.3bp at -0.109%.
• Gilt futures are up 0.73 today at 121.92 with 10y yields down -4.8bp at 1.559% and 2y yields unch at 1.365%.