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EGB/GILT - Curves trade flatter


A more subdued start for Govies, which isn't too surprising, with all the attention on the US CPI release on Wednesday.

  • Bund pared some of the early losses, but we are still quite far from highest levels traded pre NFP.
  • Peripherals are trading mostly tighter against the German 10yr, Italy leads by 1.1bp.
  • Gilts have outperformed their European counter part, which pushed the Gilt/Bund spread 2.7bps tighter for today's session.
  • UK 5/30s has trended flatter, but we are still short of Friday's flattest levels, now at 68.809 versus the Friday's low at 67.895.
  • Looking ahead, Fed Barkin (voter, leaning hawk) will speak on the economic outlook.
  • Sep Bund futures (RX) up 22 ticks at 176.72 (L: 176.39 / H: 176.91)
  • Germany: The 2-Yr yield is up 0.3bps at -0.754%, 5-Yr is down 0.3bps at -0.731%, 10-Yr is down 1bps at -0.466%, and 30-Yr is down 1.6bps at -0.017%.
  • Sep Gilt futures (G) up 49 ticks at 129.75 (L: 129.28 / H: 129.86)UK:
  • The 2-Yr yield is down 1.3bps at 0.126%, 5-Yr is down 2.9bps at 0.267%, 10-Yr is down 4.1bps at 0.57%, and 30-Yr is down 5.3bps at 0.957%.
  • Sep BTP futures (IK) up 34 ticks at 155.26 (L: 154.8 / H: 155.3)Sep OAT futures (OA) up 23 ticks at 162.46 (L: 162.14 / H: 162.6)
  • Italian BTP spread down 1.3bps at 101.1bps
  • Spanish bond spread down 0.6bps at 69.1bps
  • Portuguese PGB spread down 0.7bps at 57.9bps
  • Greek bond spread down 0.4bps at 101.2bps

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