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EGB/Gilt - EGBs underpinned into Month/Quarter end​​​​​​

BONDS
  • EGBs and Bund remains in deep green territory this afternoon, ahead of Month/Quarter end.
  • The big miss in MNI Chicago PMI has also helped futures elevated.
  • Final US Michigan was also revised lower, with 1yr and 5yr expected inflation revised 1 tenth lower respectively.
  • Peripheral spread sees the Greek/Bund spread at widest level since mid June.
  • BTP/Bund sit at the other end, and trades 5bps tighter and within past ranges.
  • BOE bought GBP1.1947bln of long-dated gilts.
  • Rejects GBP243.0mln offers.
  • Takeup lower than yesterday - and still a long way below the GBP5bln ceiling.
  • Despite the larger Month End for the UK, Gilts are in the red, as the UK Government continues to defend their mini budget plan.
  • The OBR will deliver the first iteration of that forecast to the Chancellor on Friday 7 October and will set out the full timetable up to 23 November next week.
  • Looking ahead, ECB Schnabel, Visco, Fed Bowman, Barkin and Williams are still scheduled to speak.

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