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EGB/Gilt- A busy session across assets

BONDS
  • A very busy session for cross assets, following the new B.1.1.529 Covid variant.
  • Investors have favoured safer haven throughout the session, out of Equities and into Bonds.
  • Bund is at the high of the session, at the time of typing, with investors favouring FTQ going into the weekend.
  • Bund trades in a 123 ticks ranges, but is up 138 ticks, after gaping higher on the open.
  • Gilts have outperformed, pushing the Gilt/Bund spread 5.5bps tighter, tightest since 11th November.
  • Looking ahead, after markets, rating from S&P on Ireland, and Moody's on Belgium
  • Gilt futures are up 1.40 today at 127.34 with 10y yields down -13.3bp at 0.833% and 2y yields down -10.8bp at 0.453%.
  • Bund futures are up 1.26 today at 172.24 with 10y Bund yields down -8.2bp at -0.335% and Schatz yields down -2.0bp at -0.767%
  • BTP futures are up 1.15 today at 151.53 with 10y yields down -8.5bp at 0.969% and 2y yields down -4.7bp at -0.266%.
  • OAT futures are up 1.21 today at 168.03 with 10y yields down -7.8bp at 0.035% and 2y yields unch at -0.813%.

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