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EGB/Gilt - Gilt outperforms

BONDS
  • EGBs and Bund have recovered from their session lows, with likely receiving interest, after Yields tested new highs.
  • German 2yr printed highest Yield since 2011.Safe haven buying also possibly at play, with Risk tilted to the downside.
  • Peripheral spread are wider today, with Greece and Italy 2.4bps, and 1.8bp respectively.
  • Gilt outperforms German, with the UK small CPI miss setting the tone this morning.
  • Gilt futures are up 0.14 today at 118.98 with 10y yields down -1.0bp at 1.869% and 2y yields up 2.1bp at 1.451%.
  • Bund futures are down -0.09 today at 152.45 with 10y Bund yields up 0.6bp at 1.049% and Schatz yields up 3.6bp at 0.402%.
  • BTP futures are down -0.28 today at 128.23 with 10y yields up 2.6bp at 2.984% and 2y yields up 4.7bp at 0.938%.
  • OAT futures are down -0.10 today at 145.03 with 10y yields up 0.3bp at 1.551% and 2y yields up 5.1bp at 0.284%.

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