EGB/Gilt: Recouping Earlier Losses

European government bonds had a weak start to the session before starting to recover losses through the morning. Equities are broadly higher alongside gains in the commodities space and a mixed performance in G10 FX.

• UK Parliamentary Under-Secretary of State for the Armed Forces James Heappey has stated that it was legitimate for Ukraine to use Western weapons to attack targets on Russian soil, while Russian Defence Minister Sergeĭ Lavrov has stated that the West is engaged in a proxy war with his country.
• UK public sector borrowing data came in lower than expected for March.
• Gilts have gained ground through the morning, although much of the curve still trades below yesterday's close. The very long end of the curve is 2bp steeper.
• The bund curve has bull flattened with the 2s30s spread narrowing 2bp.
• OATs have recovered through the morning and now trade close to flat on the day.
• Supply this morning came from Italy (BTP/BTPei, EUR3.75bn) and Austria (ATBs, EUR1.855bn)
• Preliminary US durable goods data for March, new home sales for for March and the Richmond Fed Manufacturing index data will be published later today.