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EGB/Gilt: Mixed Session Ahead of Tonight's FOMC

BOND SUMMARY

Gilts have weakened a touch this morning while EGBs have broadly firmed alongside gains for equities.

  • Gilt started on a strong foot before weakening through the morning. Cash yields are now 1bp higher on the day with the curve close to flat overall.
  • Bunds have firmed with yields 1bp lower across much of the curve.
  • The OAT curve has steepened slightly on the back of the short end firming and long end yields inching higher.
  • BTPs have been relatively directionless this morning and currently trade just above yesterday's close.
  • Supply this morning came from Germany (Bund, EUR1.79bn) and Italy (Bills, EUR7bn).
  • The Nationwide house price index show UK property prices dropping 0.5% M/M in July, though still recording a 10.5% annualised climb.

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