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EGB/Gilt - Core Govies Gain

BOND SUMMARY

Core European government bonds have traded firmer this morning while the EGB periphery has sold off and equities have broadly pushed higher.

  • Gilt yields are 2-3bp lower on the day and the curve has bull flattened.
  • Following a weak start, bunds have edged higher with yields up to 1bp below yesterday's close.
  • OATs similarly firmed following soft trading early in the session and now trade close to flat on the day.
  • BTPs have traded lower and remain offered. Cash yields are 1-3bp higher with the curve 1-2bp steeper.
  • The UK DMO sold GBP4.5bn of 1-/3-/6-/month bills.
  • The final Spanish CPI print for April matched the initial estimate (2.2% Y/Y).

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