Decent Pmi numbers out of Europe and the UK lead the short end lower. Talk of UK acting to curb property bubble saw Short Sterling sold off heavily.
Bund 240 min
Bund 30min
US 10year Slightly higher over night. Should see the bunds test yesterdays high early this morning.
€ curve
I think Ger bond curve followed the Euribor yesterday morning as the front end got slammed on liquidity lower & maybe some hint of no rate hike this week given the PMI positives.
All positives so we witness peripheral bond tightening to German 10 year.
€ teds
With the positive credit situation in bonds I favour buying teds.....Once the liquidity story dissipates. But with ECB meeting around the corner and no reason for action I'd be careful of long Euribor especially whilst Ukraine still ignites buying in the bonds. I guess its just a case of which part of the Bor curve to trade versus which part of bond curve in the end.
Theres a Bobl auction today. Could have a short term effect on boblteds & curve trades.
Will Yellen say anything of note this afternoon???
Good luck
