Yields regaining some ground

Core fixed income yields have continued to drift off of yesterday's lows this morning but over the past hour or so seem to have lost some momentum.

• At the time of writing:
  • 10-year UST yields are around 8bp above their lows (down around 9.5bp on the week).
  • 10-year gilts around 8.5bp higher than the lows (down around 7.0bp on the week).
  • 10-year Bunds 3.3bp higher than yesterday's low (down around 7.5bp on the week).
• It is interesting that despite some of the divergences between core fixed income markets seen over the past couple of days, the overall moves on the week so far are pretty correlated.
• Data this morning has largely been disappointing with UK monthly GDP and its components for May posting a slower than expected pace of growth while Italian industrial production unexpectedly saw its first month-on-month fall since November. Looking ahead, the data calendar is light with UK trade due at 12:00BST (7:00ET) in a delayed release, and US wholesale inventories.
• One of the highlights will be the Accounts of the June ECB meeting, although this may be looked at in a slightly different light following the outcome of yesterday's Strategy Review.
• TY1 futures are down -0-10+ today at 133-18 with 10y UST yields up 3.7bp at 1.331% and 2y yields up 1.1bp at 0.206%.
• Bund futures are down -0.10 today at 174.24 with 10y Bund yields down -0.3bp at -0.311% and Schatz yields down -0.1bp at -0.688%.
• Gilt futures are down -0.37 today at 129.05 with 10y yields up 2.0bp at 0.631% and 2y yields up 0.4bp at 0.077%.