EU ENERGY SECTOR: OMV: Q126 Results

• UK 2-year gilts saw some strength this morning and yields remain around 1.2bp below yesterday's close - but we are back to levels seen shortly before 14:30BST yesterday when there was a move higher in UK yields and GBPUSD saw some weakness. This coincided with the US equity open, some broad USD strength and prompted the breaking of long-held support in GBPUSD.
• For reference SONIA futures are trading close to yesterday's close with around 12bp of cuts priced in for the April MPC meeting and 65bp of cuts priced in by year-end.
• This morning's GDP print did little to move the needle for UK yields more widely with more focus on the Decision Maker Panel data due on Thursday (as well as the final manufacturing PMI print tomorrow which may be more prone to revision than usual given the volatility in markets during the survey period).
• On the political front domestically there is also focus on how the BMA will react to PM Starmer's ultimatum that if the upcoming doctor's strike is not called off then extra training places will not be created.
• 10-year gilt yields are 2.5bp lower on the day, splitting the difference between 10-year Bund yields (down 1.6bp) and 10-year UST yields (down 3.0bp).

Energy ministers from across the Union hold an emergency informal videoconference at 15:00CET (09:00ET, 14:00BST) to discuss coordinated EU action to address the crisis engendered by the war in Iran. Ahead of the call, European Commissioner for Energy and Housing Dan Jørgensen wrote to EU energy ministers, saying EU countries "should prepare for prolonged disruption to energy markets from the Iran war", and that countries should encourage "voluntary demand saving measures ... with particular attention to the transport sector." 

• Jørgensen and Cypriot Minister for Energy, Commerce and Industry Michael Damianos (Cyprus holds the rotating Council of the EU presidency in H126) will then take place at ~17:00CET (11:00ET, 16:00BST). Livestream here.
• As Politico notes, "This is the latest in a string of emergency summits devoted to containing the energy crisis now bearing down on Europe. National governments are pulling out the stops to shield consumers and businesses from the price increases. But with limited budgetary space to act, they’re looking to Brussels to come up with EU-wide solutions."

Bund Basis trade, unconfirmed seller:

• RXM6 2.5k at 125.53.