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EGB/Gilt

BOND SUMMARY

European government bonds trade mixed this morning with the US dollar on the front food and equities broadly inching lower.

  • Gilts have traded weaker with yields 2bp higher on the day and the curve close to flat.
  • The bund curve has steepened slightly with the 2s30s spread 1bp wider on the back of the longer end underperforming.
  • The OAT curve is similarly 1-2bp steeper on the day.
  • BTPs have firmed with yields edging down 1bp.
  • Supply this morning came from the UK (Linker, GBP1.0bn), Germany (Bund, EUR3.307bn), Italy (BOTs, EUR7.0bn) and Greece (Bills, EUR812.5mn).
  • The European data calendar was relatively light this morning.
  • French Finance Minister Bruno Le Maire has urged a faster disbursement from the EU recovery fund. Any delays in disbursing funds could undermine the regional recovery. Le Maire's comments follow the growing tension around vaccine rollout across the EU.
  • Focus shifts to the FOMC meeting later today.

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