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BONDS: Gilt/Bund spread leaning wider

BONDS
  • Small divergence in Bund and Gilt, supply could be limiting the upside in Gilt, while the lower Spanish inflation is keeping EGBs underpinned, is leaning the Gilt/Bund spread wider in early trade by 1.6bps.
  • The spread now eye a test to 171.04bps, the July high and the widest traded level since 7th May.

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