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EGB/Gilt

BOND SUMMARY

Core European govies have sold off this morning and the periphery has firmed alongside modest gains for equities.

  • Gilts have traded weaker with yields 1-2bp higher on the day and curve trading close to flat overall.
  • It is a similar story for bunds. Last yields: 2-year -0.7114%, 5-year -0.7112%, 10-year -0.5145%, 30-year -0.1045%.
  • BTPs have made growth with yields 1-2bp lower and the curve marginally bull flattening.
  • Supply this morning came from Spain (Letras, EUR6.151bn), Finland (RFGB, EUR1.0bn) and the ESM (Bills, EUR1.5bn).
  • The Catalan High Court has provisionally suspended a government decree postponing the Caltan general election from 14 February to 30 May.
  • The final German CPI print for December matched the initial estimate (-0.7% Y/Y) while the ZEW survey came in slightly better than expected (Expectations: 61.8 vs 59.4 survey).

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