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EGB/Gilt - Attention turns to the UK CPI

BONDS
  • A more steady session for EGBs and Bund today.
  • Bund still trade in the red despite some pullbacks off the lows in Treasuries, after they traded lower following the stronger US Retail Sales and IP.
  • Peripheral are all tighter against the German 10yr, Italy and Spain are in the lead by 1.2bps.
  • Gilts underperforms Germany after the UK Employment data beat this morning,
  • Gilt/Bund is in turn trading 2.2bps wider on the session
  • ALL EYES turn to the UK CPI tomorrow for investors and market participants.
  • Looking ahead, ECB Lagarde, and Fed Barkin, Bostic, George, Daly are still scheduled for today.
  • Gilt futures are down -0.26 today at 125.77 with 10y yields up 1.0bp at 0.972% and 2y yields up 2.5bp at 0.583%.
  • Bund futures are down -0.07 today at 170.68 with 10y Bund yields down -1.1bp at -0.241% and Schatz yields down -4.3bp at -0.740%.
  • BTP futures are up 0.08 today at 151.42 with 10y yields down -2.3bp at 0.971% and 2y yields down -2.0bp at -0.250%.
  • OAT futures are down -0.04 today at 166.76 with 10y yields down -1.2bp at 0.114% and 2y yields down -4.9bp at -0.822%.

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