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What's driving moves over the past hour?

BONDS
  • Core fixed income continues to hit new highs - there is little explanation for the moves.
  • Most are pointing to North Americans getting to their desks about an hour ago - and reversing the late month-end induced sell-off while also reacting to the news of the UK government's U-turn on the 45% tax rate.
  • However, it also appears as though the moves were triggered by Schatz / Bunds before impacting USTs and gilts, so the stories don't fully fit...
  • TY1 futures are up 0-20+ today at 112-22+ with 10y UST yields down -12.2bp at 3.710% and 2y yields down -12.6bp at 4.155%.
  • Bund futures are up 1.26 today at 139.75 with 10y Bund yields down -9.3bp at 2.012% and Schatz yields down -10.9bp at 1.637%.
  • Gilt futures are up 1.83 today at 982.23 with 10y yields down -14.3bp at 3.942% and 2y yields down -25.8bp at 3.941%.

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