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Attention turns to BoE tomorrow and US NFP Friday

EGB SUMMARY

EGBs have continued to trade within this morning ranges, although paring some of the early pressure.

  • US ISM missed estimates which pushed equities lower, from their best levels and in turn, a bid into Core Bonds
  • Flow remains fairly light as the street gears up for BoE tomorrow and US NFP on Friday.
  • Peripheral spreads are mixed, but Greece still outperforming at 3.8bps tighter.
  • Looking ahead, Fed Rosengren, Mester, and Canadian Senate Committee Appearance by Governor Macklem are the events left for the day.
  • Jun Bund futures (RX) down 19 ticks at 170.47 (L: 170.2 / H: 170.64)
  • Germany: The 2-Yr yield is up 0.2bps at -0.695%, 5-Yr is up 0.5bps at -0.602%, 10-Yr is up 1.1bps at -0.227%, and 30-Yr is up 1.7bps at 0.332%
  • Jun BTP futures (IK) down 18 ticks at 147.5 (L: 147.27 / H: 147.7)
  • Jun OAT futures (OA) down 21 ticks at 160.85 (L: 160.59 / H: 161.1)
  • Italian BTP spread up 0.8bps at 110.7bps
  • Spanish bond spread up 0.4bps at 67bps
  • Portuguese PGB spread down 0.1bps at 67.9bps
  • Greek bond spread down 4.1bps at 120.1bps

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