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EGB/Gilt - Broad Selling

BOND SUMMARY

European government bonds have traded broadly weaker alongside fresh losses for equities on the bout of the tech sector rout.

  • Gilts have sold off sharply with yields 3-5bp hihger on the day and the curve 2bp steeper.
  • Bund yields are now up 2-3bp with the belly of the curve slightly underperforming.
  • It is a similar story for OATs where the belly of the curve is leading the push lower.
  • BTPs have underperformed core EGBs, particularly at the longer end. The curve has bear steepened with the 2s30s spread trading up 3bp.
  • The German regional CPI data released through the morning have been broadly in line to a touch stronger in Y/Y terms. The national estimate will be published at 1300 GMT.
  • Supply this morning came from France (LT OATs, EUR10.997bn).

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