Waiting for the Summit to end (and Johnson)

The European morning session has been dominated by one theme - Brexit. All of the focus we have had from clients has been asking what time will the EU Summit end and what time will Johnson talk. We expect Johnson to speak some time this afternoon, with a good chance he waits to hear the outcome of the EU Summit before he speaks and there is also a possibility that his speech will end up being after the European close. EU Summits are notorious for not running to schedule. News headlines today have stated that Johnson will continue to negotiate past today's Summit and seek urgency and a speeding up of the talks.

• Core fixed income has remained steady, trading well within yesterday's ranges but overall a little higher than yesterday's close. European peripheral spreads are marginally wider on the day.
• US retail sales, industrial production and Michigan confidence are all due for release later today and we are also due to hear from the Fed's Bullard and Williams.
• TY1 futures are up 0-1 today at 139-05 with 10y UST yields down -0.6bp at 0.727% and 2y yields down -0.4bp at 0.136%.
• Bund futures are up 0.15 today at 176.05 with 10y Bund yields down -1.2bp at -0.624% and Schatz yields down -0.7bp at -0.780%.
• Gilt futures are up 0.08 today at 136.71 with 10y yields down -0.9bp at 0.169% and 2y yields down -1.2bp at -0.69%.