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EGB/Gilt: Firm Start To The Week

BOND SUMMARY

European sovereign bonds have started the week on a strong footing, with equities posting posting modest gains and the dollar lagging G10 FX.

  • Gilt yields are 1bp lower in early trading with the curve close to flat overall.
  • Bunds are little changed from Friday's close.
  • The OAT curve has marginally flattened with the 2s30s spread 1bp narrower.
  • It is a similar story for BTPs where cash yields are broadly 1bp lower.
  • European supply today comes from Germany (Bills), France (Bills), Netherlands (Bills) and Slovakia (Bonds). Italy is set to launch a new 16-year BTP for retail clients at some point this week.
  • The European data calendar is light on tier one releases this morning.

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