EM LATAM CREDIT: Ecuador December Trade Surplus Reported

• US Data/Speaker Calendar (prior, estimate)
• 15-Jan 0700 MBA Mortgage Applications (-3.7%, --)
• 15-Jan 0830 CPI MoM (0.3%, 0.4%), YoY (2.7%, 2.9%)
• 15-Jan 0830 CPI Ex Food & Energy MoM (0.3%, 0.3%), YoY (3.3%, 3.3%)
• 15-Jan 0830 CPI Index NSA (315.493, 315.615)
• 15-Jan 0830 CPI Core Index SA (322.657, 323.400)
• 15-Jan 0920 Richmond Fed Barkin, Maryland event (text, Q&A)
• 15-Jan 1000 MN Fed Kashkari fireside chat, (no text, Q&A)
• 15-Jan 1100 NY Fed Williams keynote address CBIA eco-summit (text, Q&A)
• Jan-15 1200 Chicago Fed Goolsbee Midwest economics forum (no text, Q&A)
• 15-Jan 1400 Fed Beige Book

Bunds underperformed Gilts Tuesday, ahead of inflation data Wednesday.

• After a constructive start, regional FI softened amid EGB supply, oil prices and equities moving off lows, and continued questions surrounding French and UK politics and fiscal policy.
• A softer-than-expected US producer price report saw yields briefly hit session lows before retracing higher over the course of the day.
• The German curve leaned bear steeper on the day, with the belly underperforming overall as yields hit fresh multi-month highs across the curve, while the UK curve was mixed.
• Periphery/semi-core spreads were flat/tighter, with OAT/Bund roughly steady through new French Prime Minister Bayrou's policy address.
• Focus early Wednesday is on UK December CPI (MNI's preview here), with consensus eyeing a downtick in Y/Y core and services inflation; later we hear from BoE's Taylor, while US CPI is the main global event later in the session. 

Closing Yields / 10-Yr EGB Spreads To Germany

• Germany: The 2-Yr yield is up 2.6bps at 2.319%, 5-Yr is up 6.6bps at 2.462%, 10-Yr is up 3.9bps at 2.652%, and 30-Yr is up 4.6bps at 2.856%.
• UK: The 2-Yr yield is up 0.4bps at 4.605%, 5-Yr is up 1.1bps at 4.613%, 10-Yr is up 0.4bps at 4.889%, and 30-Yr is up 1.1bps at 5.449%.
• Italian BTP spread down 2.2bps at 118.8bps / French OAT down 1.4bps at 83.1bps  
   

• Another +38,000 TYH5 108.5 calls, 27 ref 107-09 - puts total volume over 109.7k
• 5,600 TYG5 108 calls, 13 ref 107-09.5, total volume over 26k