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EGB/Gilt - Another volatile session

BONDS
  • Another very volatile session for EGBs, Bund and Gilt.
  • EGBs and Bund have been unwinding this morning's rally, most of the afternoon, as desk squares.
  • Given the drop in OI in Bund, rallies suggest short covers on the move higher in the contract.
  • German 5s/30s leans steeper, but trade at mid range at the time of typing.
  • Peripheral spreads sees Greece leading and 7bps tighter against the German 10yr.
  • A wild session for Gilt and the longer end 20yr and 30yr Yield.
  • The 20yr and 30yr Yield extended higher after the BoE operation's results.
  • No offers accepted by the BOE in today's op.
  • GBP2.2256bln offers rejected.
  • Looking ahead, ECB Lagarde and Fed Jefferson, Daly are still scheduled to speak.

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