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EGB/GILT - Attention turns to the FOMC

BONDS
  • A steady afternoon session, as desks awaits the FOMC
  • Bund are trading lower, helped by some large block seller in the 5yr US.
  • Some position squaring was noted in Europe , but BTPs outperform Bund this afternoon.
  • Peripheral spreads are mostly tighter, with Greece in the lead by 9.8bps.While Spain trades flat.
  • Gilt have traded in line with Bund, and this has translated to a flat spread on the session.
  • Volumes have stayed fairly subdued this afternoon.
  • Looking ahead, all eyes will be on the FOMC meeting
  • Gilts are down 13 at 127.23
  • Bund futures are down -0.15 today at 174.31 with 10y Bund yields up 0.6bp at -0.365% and Schatz yields up 0.5bp at -0.687%.
  • BTP futures are up 0.15 today at 150.14 with 10y yields down -2.0bp at 0.912% and 2y yields up 1.7bp at -0.241%
  • OAT futures are down -0.09 today at 166.29 with 10y yields up 0.4bp at -0.16% and 2y yields up 0.2bp at -0.674%.

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