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EQUITIES

Stocks Testing Wednesday High

A Little Weaker, With Eyes On Rome

EGB SUMMARY

Initial weakness and flattening in Bunds and Gilts faded over the course of the morning and early afternoon, with curves steepening even as equities ground lower.

  • Meanwhile, BTP spreads reversed most of Thursday's widening, suggesting fading risk perceptions of early elections or an otherwise disorderly outcome to the latest political crisis.
  • Not much in the way of newsflow; in data, stronger-than-expected UK GDP numbers added to the negative Gilt tone on the open.
  • Most remaining European events of note for this week will occur at/after the cash close, including UK PM Johnson leading the 1700GMT COVID press conference, and ratings reviews of the UK and Finland.

Latest levels:

  • Mar Bund futures (RX) down 21 ticks at 177.63 (L: 177.51 / H: 177.94)
  • Mar Gilt futures (G) down 10 ticks at 134.34 (L: 134.17 / H: 134.48)
  • Mar BTP futures (IK) up 36 ticks at 151.27 (L: 151.01 / H: 151.48)
  • Italy / German 10-Yr spread 3.7bps tighter at 115.6bps
MNI London Bureau | +44 203-865-3807 | tim.cooper@marketnews.com