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EGB/Gilt - Extended their rallies

BONDS
  • A busy session for Govies and some decent pullback in Bund.
  • The German contract trades in a 112 ticks range (168.64/169.76), at the time of typing.
  • The outperformance in Bund is pushing peripheral spread wider, with Greece by 3.7bps.
  • BTP is the exception and is 0.8bp tighter against the German 10yr.
  • Gilt/Bund spread has also widened, now by 1.9bps, after the spread tightened from 130.7796 to 121.11 this week.
  • Looking ahead, we have plenty more speakers, BoE Mann, Cunliffe, and Fed Logan, Barkin, Daly, Harker.
  • Gilt futures are up 0.24 today at 125.08 with 10y yields down -3.8bp at 1.048% and 2y yields down -5.3bp at 0.516%.
  • Bund futures are up 0.79 today at 169.73 with 10y Bund yields down -5.8bp at -0.187% and Schatz yields down -1.6bp at -0.689%.
  • BTP futures are up 0.79 today at 152.40 with 10y yields down -6.8bp at 0.835% and 2y yields down -1.4bp at -0.490%.
  • OAT futures are up 0.79 today at 166.11 with 10y yields down -5.7bp at 0.148% and 2y yields down -1.2bp at -0.685%.

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