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Bunds & Gilts Just Off Session Cheaps Ahead Of U.S. CPI

BONDS

Bund and gilt futures sit a little above their respective session lows after the previously covered pull back from best levels.

  • Little to really flag in terms of meaningful news stories, leaving cross-asset dynamics at the fore pre-U.S. CPI.
  • Today’s ECB speak hasn’t introduced much fresh information to the policy debate, with the hawkish and dovish wings sticking to familiar arguments re: rates, QT & bank MRR.
  • The wings of the Bund curve see a slightly more pronounced, albeit still modest, round of cheapening vs. the belly.
  • EGB spreads are typically little changed to tighter vs. Bunds.
  • The gilt curve has moved to a state of modest bear steepening from the early bear flattening.
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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