EGB/Gilt - Fast market session

A fast market afternoon session for EGBs and Govies in general, post ECB and Lagarde.

Bund is seeing super quick 20 ticks at a time movements, seeing 70ticks moves in under 20 minutes.

Big moves in peripheral and especially the BTP/Bund spread, which has widened by over 7bps, and widest since May.

Gilts has tightened versus the German 10yr, by 2.1bps, and we now have Italy and Greece 10yr yield trading above the UK 10yr.

Looking ahead, attention turns to the US inflation data, PCE Core deflator.

Gilt futures are down -0.37 today at 125.28 with 10y yields up 2.8bp at 1.011% and 2y yields up 9.9bp at 0.649%.

Bund futures are down -0.88 today at 168.66 with 10y Bund yields up 5.5bp at -0.125% and Schatz yields up 3.7bp at -0.610%

BTP futures are down -1.76 today at 149.98 with 10y yields up 12.3bp at 1.066% and 2y yields up 9.9bp at -0.111%

OAT futures are down -1.00 today at 164.85 with 10y yields up 6.2bp at 0.227% and 2y yields up 1.4bp at -0.650%.