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EGB/Gilt - Bonds collapse

BONDS
  • Another busy session for Bund and EGB's, as Govies collapsed this afternoon.
  • Technical break outs, saw long bailing out, and likely stop hitting as we broke below 171.00, to test initial support at 170.82, printed 170.81 low.
  • Further downside momentum opens to -0.246% yield level which equate to the 170.50 area.
  • Peripherals are mixed, with Italy 1.1bp wider, and Greece 1.3bp tighter.
  • Gilts have traded inline with Bunds, albeit 0.6bp wider on the Gilt/Bund spread.
  • Looking ahead, after market we get rating from S&P on Belgium, Spain, Moody's on EU, Portugal, and DBRS on Greece.
  • Dec Bund futures (RX) down 49 ticks at 170.94 (L: 170.81 / H: 171.32)
  • Germany: The 2-Yr yield is up 0.8bps at -0.695%, 5-Yr is up 1.6bps at -0.605%, 10-Yr is up 2.7bps at -0.275%, and 30-Yr is up 2.9bps at 0.224%.
  • Dec Gilt futures (G) down 42 ticks at 126.96 (L: 126.84 / H: 127.34)
  • UK: The 2-Yr yield is up 0.7bps at 0.292%, 5-Yr is up 1.8bps at 0.508%, 10-Yr is up 3.3bps at 0.85%, and 30-Yr is up 3.7bps at 1.155%.
  • Dec BTP futures (IK) down 53 ticks at 153.54 (L: 153.36 / H: 154)
  • Dec OAT futures (OA) down 48 ticks at 167.37 (L: 167.24 / H: 167.74)
  • Italian BTP spread up 1.1bps at 100.7bps
  • Spanish bond spread unchanged at 64.1bps
  • Portuguese PGB spread down 0.3bps at 54.7bps
  • Greek bond spread up 0.4bps at 111.5bps

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