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EGB/Gilt

BOND SUMMARY

It has been a mixed start to the week with gilts trading weaker, core EGBs regaining earlier losses and the periphery generally still offered.

  • Gilts are still offered with cash yields broadly 1-2bp higher and the belly of the curve underperforming.
  • Bunds trade flat on the day having clawed back earlier losses.
  • It is a similar story for OATs. Last yields: 2-year -0.6264%, 5-year -0.5328%, 10-year -0.0558%, 30-year 0.7435%
  • BTPs underperform core EGBs with yields 1-2bp higher.
  • The German IFO update for February came in better than expected with the expectations component reading 94.2 compared to 91.7 survey.

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