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EGB/Gilt: A Mixed Start

BOND SUMMARY

Gilts have traded firmer this morning while EGBs have gradually weakened through the session against a backdrop of moderately higher equities and mixed trading in G10 FX.

  • The gilt curve has bull flattened with the 2s30s spread.
  • German bonds opened stronger but soon gave up the early gains to trade flat on the day.
  • The OAT curve is marginally steeper on the back of the short-end firming.
  • BTPs have traded below the Friday close with cash yields 1bp lower.
  • There was no European supply this morning and no tier one data releases.
  • The EU mulling the possibility of sanctions against Belarus after the "hijacking" of a Ryanair flight between Greece-Lithuania.

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