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EGB/Gilt

BOND SUMMARY

European govies have traded weaker alongside modest equity gains and a leg lower for the USD.

  • Gilts have underperformed core EGBs. Cash yields are up to 2bp higher on the day with the curve 1bp steeper.
  • Bunds trade close to unch on the day. Last yields: 2-year -0.7333%, 5-year -0.7561%, 10-year -0.5927%, 30-year -0.2013%.
  • OATs trade boadly in line with bunds and little changed.
  • BTPs have traded weaker with yields broadly 2bp higher.
  • UK PM Boris Johnson and EC President Ursula von der Leyen are said to have intensified 'hotline' talks, although a breakthrough on access to the UK's fishing waters remains elusive for now.
  • The UK and France have reopened the border, but the backlog of cargo remains.
  • The final estimate of Spanish Q3 GDP came in slightly lower than expected at 16.4% Q/Q vs 16.7% previous/survey.

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