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EGB/Gilt - Busiest Monday in a while.

BOND SUMMARY

It has been one of the busiest Monday in a long time across assets.

  • Equities took the lead lower as global Covid spikes risks comes back at the forefront.
  • Equities screen are flashing red, with stoxx600 seeing largest losses in 7 Months.
  • The move in Equities and Covid concerns have favoured safer assets like Bonds and USD.
  • Bund 10yr yield is now at lowest levels since 15 of Feb, with support seen on that date's gap at -0.401%, printed a -0.396 low.
  • Curves have in turn bull flattened.
  • Gilts have traded in a large 110 ticks range, with the contract sitting 116 ticks up on the session at the time of typing.
  • The UK is now seen as the epicentre for Covid cases.
  • Hitting 54k on Saturday and over 47k on Sunday.
  • UK 5/30s is now lowest, flattest since August 2020.
  • Bund 10y yields down -4.5bp today at -0.400%
  • Schatz yields down -0.9bp today at -0.696%
  • OAT 10y yields down -3.8bp today at -0.55%
  • BTP 10y yields down -1.7bp today at 0.690%

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