Fixed Income: a bit more range extension, and UK debt correlation

Bunds marginally erased more gains and inched closer to plugging a hole down to 156.50 at a fresh 156.59 Eurex base (+2 ticks vs +31 ticks at one stage), but Gilts have seen better price action in recent trade with an advance to 121.27 (+22 ticks). Not much in the way of fresh catalysts for core fixed, but again it seems that UK rates are moving inversely with Sterling in the FX markets, like the FTSE. Perhaps German debt is displaying some caution just ahead of the bidding deadline for Bobl supply, while resistance a few ticks below 157.00 also continues to cap advances. US Treasuries relatively side-lined before a pretty packed pm agenda and ADP’s jobs proxy for NFP on Friday.