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EGB/Gilt: EZ FI Continues To Edge Lower

BOND SUMMARY

European government bonds continue to trade weaker while performance in equities has been mixed.

  • Bunds have drifted lower through the morning with yields now up 2-3bp on the day.
  • OATs have similarly edged lower, with the belly of the curve marginally underperforming with yields across the curve 1-3bp higher.
  • BTPs have underperformed core EGBs. Cash yields are up 2-6bp.
  • Oil prices have inched lower again following yesterday's reports of Saudi Arabia being amenable to increasing production.
  • The final estimate of the Eurozone May Services and Composite PMIs were revised slightly lower, while still continuing show broad expansion in activity.
  • Supply this morning came from Belgium (OLO, EUR480mn)
  • UK markets remain closed owing the Queen's Jubilee public holiday.
  • Focus shifts to US non-farm payrolls and average earnings data later today.

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