Bonds recover from session lows. TY and Bund futures failed to test yesterday’s lows during the early London selling, while gilt bears failed to get anywhere near testing key support identified in earlier bullets.

• Moves remain low conviction at this stage, ahead of this week’s tier 1 event risks.
• Headline flow remains light, with background factors (also identified in earlier bullets) seemingly driving things early today.
• Parallel shifts on German and UK curves, yields ~2bp higher.
• U.S. curve a little steeper, yields flat to 2bp higher.
• EGBs are flat to 1bp wider vs. Bunds.