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Bonds are better bid today

BOND SUMMARY
  • EGBs trade in fairly narrow ranges, but contract have been generally better bid, following the overnight risk on.
  • Fed officials are playing down that risk of higher inflation will persist.
  • Cheaper money for longer, and the dovish tone keeps Equities and Bond futures supported.
  • German curve trades bull flatter on the margin, while peripheral spreads move tighter as they outperform Germany.
  • Italy leads and is 3bps tighter on the session.
  • Gilts underperform slightly versus EGBs, with volumes here once again dominated by rolling position into September. Roll pace is at 20% ahead of 1st notice on the 27th.
  • US Treasuries are better bid on Risk on, and similar to Gilts, rolls are at the forefront, given the lack of Risk events and Data.
  • Looking ahead, Fed Barkin, Evans, Quarles, ECB Villeroy, Lane, and BoE Tenreyro are the scheduled speakers.
  • In Supplies, US 2yr $60bn

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