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What to watch

MARKET INSIGHT
  • Bond futures moved initially lower overnight but are now some way off their lows, more consistent with yesterday's close. Both Bund and TY1 futures also failed to break through Friday's lows.
  • There is little on the data calendar this morning (UK CBI trends data and Eurozone current account are the highlights). In the US the data highlights will be Chicago Fed manufacturing index and existing home sales.
  • This will put focus instead on the two syndications: the EU looking to sell a new long 25-year green bond (MNI looks for around E5bln) and the UK looking to reopen the 50-year 1.125% Oct-73 gilt (MNI looks for E6-7bln nominal). The retail book for the BTP Italia will remain open, too.
  • In terms of speakers we will hear again from BOE Chief Economist Huw Pill (he spoke Friday, so not expected to hear much new from him today) while ECB's Rehn and Kazimir present their national central banks' respective forecasts. Towards the end of the European session we will also hear from Fed's Barkin and Mester.

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