BTPs continue to outperform

Bunds have traded largely within Friday's range (albeit hitting a high of the day one tick higher than Friday at 174.87. Volatility has been fairly subdued today with North America on holiday.

• Equities have moved higher today across the region with peripheral spreads narrowing but there has been little in the way of standout headline news or data.
• BTPs continue to be among the outperformers with 10-year spreads to Bunds now as low as 122bp - the lowest levels since May 2018. We note that the tightest closing level since Q1 2016 is now in sight at 113bp.
• Bund futures are up 0.15 today at 174.83 with 10y Bund yields down -1.7bp at -0.545% and Schatz yields down -1.2bp at -0.731%.
• BTP futures are up 0.41 today at 149.88 with 10y yields down -4.6bp at 0.677% and 2y yields down -1.8bp at -0.347%.
• OAT futures are up 0.17 today at 169.20 with 10y yields down -1.9bp at -0.286% and 2y yields down -0.5bp at -0.694%.