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EGB/Gilt - Another wide range trading session

BONDS
  • A very choppy session for today, EGBs and Bund fell throughout the day, reversing the whole of last week's rally.
  • Bund trades in another impressive 208 ticks range (144.72/146.80 L/H).
  • Peripheral spread stays tight as Bund underperforms, Greece and Italy are in the lead, bot at circa 6bps.
  • Gilt is faring a little better, although still down 102 ticks at the time of typing.
  • Gilt/Bund spread is 2bps tigther.
  • Looking ahead, attention turns to tomorrow, with the Regional and National German CPI.
  • And another day with plenty more speakers, that includes ECB Lagarde, de Guindos, Schnabel, BoE Bailey, Swati, Fed Powell, Mester, Bullard.
  • Gilt futures are down 102 ticks at 112.07
  • Bund futures are down -1.19 today at 145.30 with 10y Bund yields up 9.1bp at 1.635% and Schatz yields up 5.8bp at 0.936%.- BTP futures are down -0.20 today at 120.52 with 10y yields up 4.8bp at 3.558% and 2y yields up 0.3bp at 1.433%.
  • OAT futures are down -1.06 today at 136.04 with 10y yields up 10.6bp at 2.182% and 2y yields up 6.0bp at 0.792%.

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