EGB/Gilt

Following a weak start, EGBs have firmed through the morning. European currencies have gained against the US dollar while equities have posted modest gains.

• Gilts trade close to unch on the day. The Mar 21 gilt future trades at 134.60, near the middle of the day's range (L: 134.36 / H: 134.71).
• Bunds are similarly now flat on the day. Last yields: 2-year -0.7364%, 5-year -0.7547%, 10-year -0.5774%, 30-year -0.1715%.
• OATs have firmed with yields edging down 1bp across the curve.
• BTPs have marginally outperformed with yields 1-2bp lower on the day.
• Both Norges Bank and the Swiss National Bank left policy rates unchanged at this morning's monetary policy meetings. Norges Bank indicated that it could begin to raise interest rates earlier than initially thought. Focus now shifts to the BoE at midday.
• UK Chancellor of the Exchequer Rishi Sunak has extended emergence Covid loans for businesses. The move comes shortly after London was placed in tier 3 restrictions.
• The final Eurozone CPI estimate for November matched the initial reading (-0.3% Y/Y)