Yields Higher With Supply, Cenbank Speakers In Focus

Global core FI is slightly weaker in early Tuesday trade, with Bunds underperforming Tsys and Gilts. Focus is on supply and central bank communications.

• German yields have drifted higher most of the morning, with UK and US yields up but off session highs. Periphery EGB spreads are mostly wider.
• Most attention in Tuesday's session is on a Riksbank event that's just gotten underway and is running most of the day, with a heavy set of global central bank speakers due including Fed's Powell.
• While the data docket is relatively quiet, Tuesday's European issuance slate is packed, with supply from the Netherlands, Austria, UK, Belgium, Latvia, and Italy.
• USD corporate sales continue apace meanwhile, and $40B 3Y Note will kick off Tsy coupon issuance for 2023.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

• Germany: The 2-Yr yield is up 3.7bps at 2.649%, 5-Yr is up 5.1bps at 2.317%, 10-Yr is up 4.8bps at 2.276%, and 30-Yr is up 4.3bps at 2.223%.
• UK: The 2-Yr yield is up 2bps at 3.465%, 5-Yr is up 2.1bps at 3.467%, 10-Yr is up 3.6bps at 3.562%, and 30-Yr is up 4.3bps at 3.988%.
• Italian BTP spread up 1.8bps at 197.6bps / Spanish up 0.4bps at 104.9bps