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EGB/Gilt: Firm Start To The Week

BOND SUMMARY

European bonds have firmed this morning with curves bull flattening alongside a broadly weak performance for equities.

  • Gilt yields are 1-2bp lower across the curve with the 2s30s spread 1bp narrower.
  • The bund curve is similarly 1bp flatter on the day.
  • The short end of the OAT curve has been a little soft with the 2s30s spread narrowing 2bp.
  • BTPs have marginally outperformed core EGBs with cash yields edging down 1-3bp.
  • Supply this morning came from Germany (Bubills, EUR3.466bn allotted) and Ireland (IRTB, EUR750mn). France will sell a combination of BTFs later today for EUR5.1-6.3bn).
  • There was no tier one European data this morning.
  • UK PM Boris Johnson is expected to announce today that the remaining social restrictions in England will be lifted on July 19.

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