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EGB/GILT

BOND SUMMARY

European sovereign curves have bull flattened this morning alongside broad gains for equities and an uplift in oil.

  • Gilts have outperformed EGBs. Cash yields are 1-3bp lower with the curve 2bp flatter.
  • Bunds have traded firmer with the longer end similarly outperforming. Last yields: 2-year -0.7938%, 5-year -0.8147%, 10-year -0.6323%, 30-year -0.2130%.
  • OATs trade broadly in line with bunds with the curve marginally flatter.
  • It is the same story for BTPs with yields up to 3bp lower on the day.
  • France will offer E6.3-7.5bn of 3/-6-/12-month BTFs this afternoon.
  • German exports for September came in slightly stronger than expected (2.3% Y/Y vs 2.0% survey).

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