Bunds & Gilts Continue To Cheapen, Still Flatter

Core global FI continues to tick lower, with European equities generally remaining on the front foot and perhaps some spillover from the firmer EU natural gas prices evident.

• Also note that the European morning saw the IMF warn of stubborn inflation and weak global growth in 2024, which would play into the flattening dynamic seen.
• Bund futures show -45 on the day, retracing back whin the confines of yesterday’s range.
• German cash benchmarks sit 4-6bp cheaper.
• Most 10-Year EGBs continue to hold tighter vs. Bunds, with PGBs and GGBS still providing the exceptions.
• Gilt futures show -10, while UK cash benchmarks are 0.5-6.5bp cheaper.
• Curves are still flatter on the day but off session extremes.