OUTLOOK: Price Signal Summary - EUROSTOXX 50 Pullback Appears Corrective

Gilts are off session highs, with equity futures off session lows and crude oil regaining some poise.

• Cross-market moves drove the early bid, with a lack of definitive progress in the Trump-Putin meeting (particularly when it comes to a palatable proposal for Ukraine) noted.
• Elsewhere, others pointed to the market fading some of Friday’s bear steepening (which similarly lacked a clear headline trigger, with ongoing European focus on fiscal matters/issuance outlooks and Dutch pension reform noted back then).
• Futures as high as 91.32 after trading 90.91 on Friday. Last ~91.10.
• Still, bears remain in technical control. Fresh extension lower would target the May 29 low (90.59).
• Conversely, bulls need to clear the 50-day EMA (92.05).
• Yields 1-2bp lower, curve flatter.
• The early June high in 10-Year yields (4.702%) remains intact.
• A reminder that 50s registered a fresh cycle high on Friday, but bears failed to force a test of 5.00%.
• The 5s30s curve continues to hover just below Friday’s multi-year highs (last 146.5bp), 150bp is the next upside target.
• BoE-dated OIS prices 13.5bp of easing through December and 24bp of cuts through February, little changed on the day.
• Wednesday’s CPI data headlines the domestic calendar this week, see our morning STIR bullet/global week ahead publication for more colour on that front and expect our usual detailed preview in due course.