NATGAS: Turkstream Began Slovakia Supplies Feb 1: SPP

• MNI: EUROZONE DECEMBER CONSTRUCTION PMI 42.9 (NOV 42.7)

Little net movement in gilts as softer-than-expected French CPI counters earlier selling in Bunds.

• Futures +10 at 92.05,
• Bearish technicals intact in the contract.
• Initial support at the Dec 19 low/bear trigger (91.64), while initial resistance is located at the Jan 2 high (92.88).
• Yields little changed across the curve to start.
• Gilt/Bund 10-Year yield spread flat at 216bp.
• SONIA futures 0.5-1.5bp higher on the day with wider bonds off lows and BoE-dated OIS showing 57bp of cuts through ’25 vs. 56bp early today.
• DMO issuance for calendar ’25 gets underway this morning, via GBP2.25bln of the 4.375% Jul-54 gilt.

Bobl/Bund block trade suggest a steepener, perfectly weighted.

• RXH5 ~2.35k sold at 132.40.
• OEH5 ~4.95k bought for 117.25.