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EGB/GILT

BOND SUMMARY

European govies have broadly traded weaker this morning alongside fresh losses for equities.

  • The Bank of England voted 9-0 to leave the bank rate and QE target unchanged. Gilts have sold off this morning with cash yields 1-2bp higher and the curve bear steepening.
  • Bunds have lacked clear direction and broadly trade close to unch on the day.
  • The BTP sell-off has been a little more clear cut with yields up to 2bp higher across the curve.
  • Supply this morning came from France (OATs, EUR8.49bn and Linkers, EUR1.249bn), Spain (Bonos/Oblis, EUR4.2bn) and Ireland (Bills, EUR0.75bn).
  • The UK is set to announce new restrictions on the north-east of England following a surge in coronavirus infections.
  • The US Democratic presidential candidate Joe Biden has warned the UK if the government's proposed internal market bill undermines the Good Friday Agreement then a US-UK trade deal would be at risk.

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