EGB/Gilt - Fades post US PPI selling

EGBs have been mixed this afternoon, initially pushing lower after the higher US PPI print, but we have since faded off the lows.

• Curves are mostly flat, with volumes once again on the lower side.
• All the peripheral spread are trading tighter against the German 10yr, with Italy leading by 2.3bps.
• Gilts have widened against Germany, by 1.9bp at the time of typing, after the UK inflation set the tone for the trading session.
• Curves remains mixed this afternoon, UK.2s/10s trade flatter, while the 5s/30s is steeper.
• Looking ahead, we have no data nor speakers scheduled for the rest of the day, and attention will turn to the $27bn 30yr auction
• Sep Bund futures (RX) steady at 176.57 (L: 176.35 / H: 176.77)
• Germany: The 2-Yr yield is up 0.3bps at -0.745%, 5-Yr is up 0.5bps at -0.723%, 10-Yr is up 0.7bps at -0.457%, and 30-Yr is up 0.2bps at -0.007%.
• Sep Gilt futures (G) down 12 ticks at 129.51 (L: 129.31 / H: 129.82)
• UK: The 2-Yr yield is up 2.5bps at 0.148%, 5-Yr is up 2.8bps at 0.302%, 10-Yr is up 2.4bps at 0.595%, and 30-Yr is up 3.2bps at 0.978%.
• Sep BTP futures (IK) up 26 ticks at 155.15 (L: 154.82 / H: 155.19)
• Sep OAT futures (OA) up 8 ticks at 162.32 (L: 162.08 / H: 162.41)
• Italian BTP spread down 2.3bps at 100.8bps
• Spanish bond spread down 1.5bps at 68.6bps
• Portuguese PGB spread down 1.7bps at 56.9bps
• Greek bond spread down 1.6bps at 101bps