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EGB/GILT

BOND SUMMARY

It has been a relatively uneventful session so far with focus on this week's ECB meeting.

  • Gilts have lack momentum this morning and trade close to unch on the day. The Dec-20 gilt future trades at 135.22, in line with yesterday's close.
  • Bunds have firmed but gains have been limited. Last yields: 2-year -0.7659%, 5-year -0.7802%, 10-year -0.5864%, 30-year -0.1701%.
  • OATs have traded in line with bunds at the longer end. Cash yields are 1bp lower on the day.
  • BTPs have rallied and the curve has bull flattened. The 2s30s spread is 3bp narrower
  • Supply this morning came from the UK (Gilt, GBP3.25bn) Italy (CTZ/BTPEi, EUR3.25bn) and Greece (Bills, EUR812.5mn). The DMO will also sell GBP1.0bn of the 1.625% Oct-71 Gilt.
  • The data calendar is light today with just UK CBI Reported Sales data for October at 1100 London time.

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