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Consolidating Above Support


Corrective Cycle


Consolidating But Remains Bullish

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European govies have traded mixed this morning alongside fresh downside for equities and broad dollar strength against G10 FX.

  • Gilt yields are broadly 1bp higher with the curve slightly bear steepening.
  • Bunds have lacked clear direction so far and trade close to flat on the day.
  • OATs are similarly now little changed on the day. Last yields: 2-year -0.659%, 5-year -0.5464%, 10-year 0.084%, 30-year 0.8446%.
  • BTP cash yields are 1-2bp higher with the close marginally flatter.
  • The UK CBI Retailing Reported Sales updated for April came in stronger than expected (20 vs 10 survey).
  • Elsewhere, Italian consumer and business confidence surveys were similarly better than expected for April.
  • Supply this morning came from Germany (Bund, EUR3.253bn allotted) and Italy (BTP/BTPei, EUR5.5bn ). The UK DMO has also offered GBP6bn of a new 30-year gilt through syndication.