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EGB/Gilt - Move off the lows

BONDS
  • EGBs and Bund remains in the red this afternoon, but off their lows, led by a bounce in Treasuries, following the US Services PMI miss.
  • Nonetheless, the 2yr German yield tested highest level since 2013, while the 5yr hovered around the 0.75% mark.
  • Gilt has outperformed, after the tone was set on the European open, with a miss in UK Retail sales.
  • Gilt/Bund spread is 5.7bps tighter and testing the 100.00bps area.
  • Support here is at the 27/08/21 low, 99.91bps.Looking ahead, BoE Bailey speaks.
  • After markets, ratings with S&P on Greece, Italy, Netherlands, and Moody's on Slovenia.
  • Gilt futures are up 0.39 today at 118.14 with 10y yields down -7.0bp at 1.941% and 2y yields down -6.1bp at 1.679%.
  • Bund futures are down -0.21 today at 153.59 with 10y Bund yields down -0.6bp at 0.939% and Schatz yields up 6.2bp at 0.250%.
  • - BTP futures are down -0.71 today at 131.72 with 10y yields up 4.2bp at 2.646% and 2y yields up 7.3bp at 0.599%.
  • OAT futures are down -0.18 today at 146.51 with 10y yields down -0.7bp at 1.395% and 2y yields up 6.2bp at 0.257%.

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