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Core Yields Tick Lower

BONDS

Little in the way of meaningful headline flow to explain the latest downtick in core FI yields, with the softening of oil prices likely feeding through.

  • 10Y Bund yields have fallen over 3bps in the last 30 minutes, trading at 2.0704% at typing, though remain within yesterday's range as with 10Y Gilts.
  • The 10Y BTP/Bund spread tightened a touch before reversing course, and remains 3.1bps wider at 167.7bps.
  • Note that impending Schatz supply will also be weighing on the German short-end in the run-up to the 1030GMT bidding deadline.

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