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EGB/Gilt

BOND SUMMARY

European sovereign bonds are broadly firmer alongside mixed trading in equities.

  • The gilt curve has bull flattened with the 2s30s spread 2bp narrower. The Mar 21 gilt future trades at 135.33, 5 ticks off the day's high.
  • Bunds trade close to unch on the day. Last yields: 2-year -0.7731%, 5-year -0.8023%, 10-year -0.6266%, 30-year -0.2217%.
  • OAT trades in line with bunds and little changed on the day.
  • BTPs have trade marginally firmer with yields 1bp lower.
  • Supply this morning came from Spain (Letras, EUR1.227bn).
  • UK employment change data for October was better than expected (-143k 3m/3m vs -250k survey) while the claimant count rate ticked up to 7.4% in November from 7.3% the previous month.

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