European core yields are higher on the day, stocks slightly down, amid cautious markets after North Korea test fired a missile capable of hitting the U.S. Volumes are lower than usual as the U.S. is closed for Independence Day holiday. Eurozone spreads are coming in after yesterday’s ECB source story suggesting the central bank is not ready yet to remove the easing bias on QE is underpinning the outperformance of Bunds versus Gilts. BoE comments this morning highlighted the division at the central bank, while the Riksbank left rates on hold and said it is less likely now to cut rates again. Global central bank support may have peaked, but officials remain cautious with regard to exit steps, with the division among both ECB and BoE officials adding to volatility in markets.