UK debt has seen a bit more downside in recent trade, and perhaps psychologically if not significantly, the 10 year benchmark has lost grip of 121.00 on its way down to a new intraday Liffe low at 120.92 (41 ticks below Monday’s close). No specific fundamental reason for the further loss of traction, but the FTSE and other EU indices are consolidating gains and there could be some concession building for the looming long end auction. Elsewhere, Bunds also pulling away from their recovery peak (159.74) and closer to the early Eurex base, as BTPs continue to claw back Italian election-related declines. Technically, the core German bond needs to hold the 159.45 low, given rising channel support and yesterday’s session trough are not far below at 159.40-41. US Treasuries remain firmer in contrast, albeit off overnight highs having made way for the rebound on Wall Street late on Monday and looking ahead to US data.