Weaker Ahead Of The Holidays

Global fixed income is trading decisively weaker Thursday, on the last pre-holiday trading session for US fixed income (early close today too) and most European bonds.

• Gilts are leading the way lower alongside a stronger GBP, with the UK gov't set to avoid announcing lockdown restrictions ahead of Christmas.
• Elsewhere, in Bunds and Treasuries, a bit of bear steepening. BTPs bucking the risk-on trend, underperforming both Bunds and the rest of the periphery.
• Not much in the way of market-moving headlines in the morning, but a fairly heavy US data slate ahead of Friday's holiday: jobless claims, durable goods and PCE among them.

Latest levels:

• Mar 10-Yr US futures (TY) down 3.5/32 at 130-20 (L: 130-19.5/ H: 130-26)
• Mar Bund futures (RX) down 44 ticks at 172.7 (L: 172.7 / H: 173.19)
• Mar Gilt futures (G) down 41 ticks at 125.24 (L: 125.23 / H: 125.56)
• Mar BTP futures (IK) down 90 ticks at 147.6 (L: 147.6 / H: 148.45)
• Mar OAT futures (OA) down 48 ticks at 164.47 (L: 164.46 / H: 165)