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USDCAD TECHS

Needle Still Points South

US TSYS

Yields Bounce as Equities Make New Monthly Highs

AUDUSD TECHS

Heading North

EURJPY TECHS

Bull Rally Accelerates

COLOMBIA

Economists Survey Raises 2021 CPI Forecast To 4.9%

BOND SUMMARY

European government bonds have broadly rallied this morning with the EGB periphery outperforming alongside gains for equities.

  • Gilts opened firmer and have traded sideways through the morning. Yields are 1bp lower on the day.
  • Bunds have similarly firmed with the curve 1bp flatter.
  • OATs have marginally outperformed bunds with belly/long-end yields 2-3bp lower on the day.
  • BTPs have outperformed core EGBs with cash yields down 3-5bp.
  • Supply this morning came from Germany (Bubill, EUR3.614bn allotted) and the Netherlands (DSL, EUR1.7bn). France will offer EUR5.3-6.5bn of BTFs this afternoon. The UK is today issuing GBP4bn of a 0.125% Mar-39 linker via syndication with books last seen over GBP28.75bn. There is also a hefty EUR20.3bn OAT redemption today.
  • The final German Q1 GDP print was a touch weaker than the initial estimate (-1.8% Q/Q vs -1.7% previously).
MNI London Bureau | +44 0203-865-3808 | bruce.jeffery@marketnews.com
MNI London Bureau | +44 0203-865-3808 | bruce.jeffery@marketnews.com