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EGB/Gilt - BTP and Gilt lead Govies higher

BONDS
  • EGBs and Bund have extended their rallies this afternoon, led by the BTP and UK Gilt.
  • German 10yr Yield is settling back towards the 1% mark, while UK 10yr has moved off the 2% level, now trading at 1.834% at the time of typing.
  • Peripheral spreads have tightened today, with the largest move seen in the BTP/Bund spread, by 7.4bps.
  • The continued outperformance in Gilts, pushed the Gilt/Bund spread towards 80.00bps, but trades at 82.3bps at the time of typing, tighter by 3.5bps.
  • Looking ahead, Fed Mester, Waller and ECB de Guindos are still set to speak, and attention is also slowly turning to the US CPI release tomorrow.
  • Jun Bund futures (RX) up 116 ticks at 152.9 (L: 151.5 / H: 153.17).
  • Germany: The 2-Yr yield is down 6.4bps at 0.165%, 5-Yr is down 7.8bps at 0.69%, 10-Yr is down 8.4bps at 1.011%, and 30-Yr is down 8.2bps at 1.152%.
  • Jun Gilt futures (G) up 114 ticks at 119.25 (L: 117.98 / H: 119.51).
  • UK: The 2-Yr yield is down 9bps at 1.303%, 5-Yr is down 11.3bps at 1.466%, 10-Yr is down 11.7bps at 1.839%, and 30-Yr is down 11.9bps at 2.04%.
  • Jun BTP futures (IK) up 153 ticks at 128.02 (L: 126.13 / H: 128.62).
  • Jun OAT futures (OA) up 112 ticks at 145.04 (L: 143.72 / H: 145.38)
  • Italian BTP spread down 6.5bps at 199bps
  • Spanish bond spread down 3.1bps at 108.8bps
  • Portuguese PGB spread down 1.8bps at 113.7bpsGreek bond spread down 3.3bps at 249.9bps

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