Bunds & Gilts Further Away From Highs After U.S. Data

U.S. data pushes EGBs and gilts further away from session highs, although yields on major curves remain lower on the day.

• German yields see a ~1.5bp parallel shift lower vs. yesterday’s close.
• 10-Year OATs are little changed to wider vs. most EGB peers after this morning’s Franch budget deficit data for ’23. Participants now eye the run of Franch sovereign rating reviews due over the next couple of months (more on that later).
• Peripherals outperform amongst EGBs.
• Gilt flattening holds, despite the strong results at this morning’s 4.50% Jun-28 auction. Yields are 1-4bp low across the curve.
• Previously covered technical levels remain untouched and intact in Bunds and Gilts.
• European and UK headline flow has been limited since this morning’s run of central bank speakers.