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EGB/GILT

BOND SUMMARY

European sovereign bonds have traded mixed this morning.

  • Gilts traded a touch firmer early in the session, but have now returned to yesterday's closing levels.
  • Bunds have rallied with cash yields 1-2bp lower on the day and the curve marginally flatter.
  • OATs trade broadly in line with bunds. Last yields: 2-year -0.6693%, 5-year -0.6219%, 10-year -0.6219%, 30-year 0.4325%.
  • BTPs have traded weaker with yields 1-2bp higher.
  • The ECB supplied EUR174.5bn to banks via the TLTRO with 388 banks bidding for funds.
  • Supply this morning came from Italy (BTPEi & CTZ, EUR4.5bn) and the UK (Gilts, GBP4.2bn).
  • The SNB left policy rates unchanged while stressing that it stands ready intervene more strongly to combat franc strength.
  • The Germany IFO survey results for September were broadly in line with expectations. UK CBI Retailing Reported Sales data for September came in above expectations (11 vs -10 survey).

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