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BONDS: Bunds and Gilts More Than Pare Earlier Losses

BONDS

EGBs and Gilts have more than pared earlier losses. Notable headline flow has been light, with participants looking ahead to this week’s macro and political events.

  • Bund futures are -7 at 134.48, while Gilts are now little changed vs Friday’s settlement at 99.98.
  • ECB-dated OIS price 62bps of easing through the remainder of 2024 (vs 63bps this morning), while there are 46bps of BoE cuts priced over that horizon (vs 44bps this morning).
  • No surprises are expected at Thursday’s ECB meeting, with a 25bps cut still fully priced. Our policy team’s latest sources piece focused on the ECB’s expected policy guidance at that meeting.
  • UK labour market data will be the initial focus tomorrow morning (our preview will be released shortly), while the Eurozone calendar is headlined by final German August CPI and syndications from Italy and the EU. 

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