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Brexit dominates thin markets (again)

BOND SUMMARY
  • Markets are beginning to feel a lot like Christmas. Bunds moved higher following Treasuries this morning on the familiar concerns of Brexit, Covid-19 and US stimulus. However gilts opened marginally lower after yesterday's big rally (despite remaining some way off the high).
  • Just around the time of writing, Bloomberg has reported that the EU has rejected the UK's offer to reduce the EU's value of fish caught in UK waters by 60% (up from 30% last week). This is in line with reports from the Telegraph overnight but still moved gilts a little higher (and sterling a bit lower) - although not enough to retrace the moves of the day so far.
  • TY1 futures are up 0-4 today at 137-28+ with 10y UST yields down -0.9bp at 0.926% and 2y yields down -0.5bp at 0.118%.
  • Bund futures are up 0.07 today at 177.93 with 10y Bund yields down -0.9bp at -0.591% and Schatz yields down -0.9bp at -0.750%.
  • Gilt futures are down -0.11 today at 135.30 with 10y yields up 0.5bp at 0.209% and 2y yields up 0.2bp at -0.119%.

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