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Bunds & Gilts Away From Best Levels

BONDS

The move away from best levels in both Bunds & Gilts has seemingly been aided by a pull cheaper in U.S. Tsys that started before and extended on the back of firmer than expected Canadian Q1 GDP data. Gilts have been more willing to pare some of the move in recent trade, suggesting that the lack of meaningful downside surprise in German national CPI vs. regional implied levels may be factoring more into the move in Bunds. Cash Bunds see 2-6bp of richening across the curve on the day, with the belly outperforming, while Gilts see 5-10bp of richening on day, bull steepening.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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