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EGB/Gilt: Gilts Lead European FI Sell Off

BOND SUMMARY

European government bonds have traded weaker this morning alongside modest gains for equities and mixed performance in FX.

  • Gilts have significantly underperformed with yields 3-5bp higher and the long-end of the curve leading the sell off.
  • Bunds have edged lower with yields now down 1-2bp on the day.
  • It is a similar story for OATs where the curve is marginally steeper.
  • BTPs have slightly underperformed core EGBs with cash yields 2-4bp higher across the curve.
  • Supply this morning came from the UK (UKTBs, GBPbn).
  • There were not tier one European data releases this morning and no speakers from the ECB and BoE following a relatively busy schedule this week.

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