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Bunds And Gilts Dragged To Session Lows By USTs

BONDS

Bunds and Gilts push to session lows, led by the drop in US Tsys - no headline catalyst seen. Front Gilts now testing Monday's low of 100.37; the May 10 low of 134.99 is in sight for Bunds (last 135.19).

  • That said, the bear flattening move in European curves is less pronounced than in their US counterpart (little movement in ECB / BoE hike pricing, vs a mini-spike of ~2bp In June FOMC hike expectations the last few minutes).

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