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EGB/Gilt - A fast market afternoon session

BONDS

A fast market afternoon session for cross assets, after the US CPI beat expectations.

  • Unrounded % M/M figures: Headline 0.118%; Core: 0.567%
  • Unrounded % Y/Y figures: Headline 8.263%; Core: 6.322%
  • Looking at the early price action higher Equities, higher Govies and lower USD suggested that desks were positioning for a US CPI miss.
  • Bund fell 91 ticks from 144.36 to 143.45, and saw further downside traction all the way down to initial support at 143.00, printed a 143.00 low.
  • Peripheral spread sees BTP/Bund spread moving tighter this afternoon, by 4.7bps, and edging towards the lowest level since the 25th August.
  • Gilt has followed suit, but the future lag Bund somewhat, bringing the Gilt/Bund spread 1.3bp tighter at the time of typing.
  • Looking ahead, attention turns to the other main event for the week and the UK CPI tomorrow morning.
  • Dec Bund futures (RX) down 104 ticks at 143.46 (L: 143 / H: 144.47)
  • Germany: The 2-Yr yield is up 7.1bps at 1.39%, 5-Yr is up 7.7bps at 1.569%, 10-Yr is up 6.6bps at 1.719%, and 30-Yr is up 4.9bps at 1.799%.
  • Dec Gilt futures (G) down 90 ticks at 105.3 (L: 104.8 / H: 106.15).
  • UK: The 2-Yr yield is up 4.5bps at 3.079%, 5-Yr is up 6.2bps at 3.051%, 10-Yr is up 4.8bps at 3.13%, and 30-Yr is down 0.1bps at 3.449%.
  • Dec BTP futures (IK) down 46 ticks at 117.22 (L: 116.76 / H: 118.51)
  • Dec OAT futures (OA) down 87 ticks at 137.5 (L: 137.04 / H: 138.5)
  • Italian BTP spread down 5.4bps at 225.6bps
  • Spanish bond spread down 1.8bps at 112.9bps
  • Portuguese PGB spread down 1.3bps at 103.2bps
  • Greek bond spread down 2.5bps at 251.4bps
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A fast market afternoon session for cross assets, after the US CPI beat expectations.

  • Unrounded % M/M figures: Headline 0.118%; Core: 0.567%
  • Unrounded % Y/Y figures: Headline 8.263%; Core: 6.322%
  • Looking at the early price action higher Equities, higher Govies and lower USD suggested that desks were positioning for a US CPI miss.
  • Bund fell 91 ticks from 144.36 to 143.45, and saw further downside traction all the way down to initial support at 143.00, printed a 143.00 low.
  • Peripheral spread sees BTP/Bund spread moving tighter this afternoon, by 4.7bps, and edging towards the lowest level since the 25th August.
  • Gilt has followed suit, but the future lag Bund somewhat, bringing the Gilt/Bund spread 1.3bp tighter at the time of typing.
  • Looking ahead, attention turns to the other main event for the week and the UK CPI tomorrow morning.
  • Dec Bund futures (RX) down 104 ticks at 143.46 (L: 143 / H: 144.47)
  • Germany: The 2-Yr yield is up 7.1bps at 1.39%, 5-Yr is up 7.7bps at 1.569%, 10-Yr is up 6.6bps at 1.719%, and 30-Yr is up 4.9bps at 1.799%.
  • Dec Gilt futures (G) down 90 ticks at 105.3 (L: 104.8 / H: 106.15).
  • UK: The 2-Yr yield is up 4.5bps at 3.079%, 5-Yr is up 6.2bps at 3.051%, 10-Yr is up 4.8bps at 3.13%, and 30-Yr is down 0.1bps at 3.449%.
  • Dec BTP futures (IK) down 46 ticks at 117.22 (L: 116.76 / H: 118.51)
  • Dec OAT futures (OA) down 87 ticks at 137.5 (L: 137.04 / H: 138.5)
  • Italian BTP spread down 5.4bps at 225.6bps
  • Spanish bond spread down 1.8bps at 112.9bps
  • Portuguese PGB spread down 1.3bps at 103.2bps
  • Greek bond spread down 2.5bps at 251.4bps