EGB/Gilt - Futures under constant pressure

A busy session for EGBs, Bund and Govies in general.

• The early German PPI set out the tone for the session, also helped by the Riksbank's hike.
• Futures have continued to plummet throughout the afternoon session.
• The German 10yr Yield broke the 2022 high and now trades at its highest level since 2014.
• The 10yr German is not far from the 2014 peak, 140.31 = 1.970% (2014 peak), but this might hold going into the close, as EU Prop desk and locals square, with Bund trading in deep oversold territory.
• Above average volumes have gone through today, as the UK come back from their Bank Holiday.
• Gilt continues to trade mostly inline with Germany, although the Gilt/Bund spread has widened a touch, by 1.4bp, but well within past range.
• Looking ahead, ECB President Christine Lagarde is still scheduled to speak, while attention turns to the FOMC tomorrow.
• Dec Bund futures (RX) down 202 ticks at 140.6 (L: 140.55 / H: 142.58)
• Germany: The 2-Yr yield is up 12.8bps at 1.737%, 5-Yr is up 14.4bps at 1.849%, 10-Yr is up 14.4bps at 1.949%, and 30-Yr is up 14.7bps at 1.956%.
• Dec Gilt futures (G) down 143 ticks at 103.81 (L: 103.6 / H: 105.12)
• UK: The 2-Yr yield is up 17.3bps at 3.313%, 5-Yr is up 16.7bps at 3.293%, 10-Yr is up 15.2bps at 3.289%, and 30-Yr is up 14.1bps at 3.591%.
• Dec BTP futures (IK) down 173 ticks at 114.82 (L: 114.67 / H: 116.46)
• Dec OAT futures (OA) down 208 ticks at 134.79 (L: 134.75 / H: 136.83)
• Italian BTP spread down 1.1bps at 227.2bps
• Spanish bond spread up 0.3bps at 114.8bps
• Portuguese PGB spread down 0.7bps at 103.5bps
• Greek bond spread down 2.6bps at 254.3bps