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Bonds plummet

BONDS
  • A busy afternoon session and a clear pick up in Volumes going into the weekend.
  • EGBs and Bund plummeted, pushing yields to new multi years highs.
  • Europe got dragged lower, as another Bank upped their rate call path for the Fed, with Citi, now boosting their forecast to four 50bps hike at each meeting.
  • Tnotes dropped, and yield tested the 2.50% resistance level, printing a 2.4990% high at the time of typing.
  • Peripheral spreads are all tighter ver5sus the German 10yr, with Greece in the lead, by 3.7bps.
  • Gilts have traded in line with Germany, translated in a flat Gilt/Bund spread.
  • Looking ahead, Fed Barkin, Waller and ECB Guindos.
  • After market, ratings: Fitch on the Netherlands.
  • Moody’s on Hungary & Sweden S&P on Germany, DBRS Morningstar on the European Union (current rating:

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