Bund futures remain underpinned after a lack of upside surprises in China’s latest stimulus package. Futures are +41 at 131.83, but remain short of Wednesday’s post US election high of 132.22

• The bearish technical theme in Bund futures remains intact, though a breach of Wednesday’s high would be seen as an early bullish development.
• German swap spreads are off yesterday’s lows, with 10-year Bund vs 3m Euribor hovering around 0bps.
• The German curve has bull flattened, but 2s10s remains over 7bps steeper than Tuesday’s close, currently 19.5bps.
• 10-year peripheral spreads to Bunds have widened, with the Chinese stimulus news pulling European equity futures 1% lower. The BTP/Bund spread is back above 130bps at typing.
• The subdued trend in Italian industrial production persisted in September.