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EGB/Gilt - German 10yr Yield lowest since April

BONDS
  • EBGs and Bund have fully recovered from this morning's lows and have rallied back throughout the European afternoon session.
  • The fall in Oil has been of the supporting factor (inflation).
  • German 10yr Yield fell to its lowest level since 28th April.
  • US final PMI was also revised lower (1 tenth).
  • US Price paid fell to its lowest level since 2010, and manufacturing index lowest since June 2020.
  • Next technical for Bund is at 0.753% Yield (13/14th April low).
  • Reference 158.00 = 158.61.
  • Peripheral are all tighter, with Italy in the lead by 7bps, down to 211.4bps.
  • Gilt are trading inline with Europe, which is reflected in a flat Gilt/Bund spread.
  • Looking ahead, notable data for the rest of the week, Swiss CPI, Turkey CPI, Global Services PMIs (mostly final for core), US ISM Services Index (Wed), German, French, Italian IP, Canadian Employment, US NFP (Fri).

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