EGB/Gilt - Gilts underperforms

EGBs have mostly been mixed and within ranges, with all the attention turning to the ECB and Lagarde's presser.

• Bund trades mostly at mid range, and the curve is flat.
• Peripherals are all tighter against the German 10yr, with Greece in the lead by 1.7bps.
• Gilts have underperformed the most, translating into a wider Gilt/Bund spread, following Andrew Bailey hawkish comment yesterday afternoon.
• We are seeing similar price action in the shorter end, with the Short Sterling strip better offered.
• Looking ahead, all the attention is on the ECB, US IJC is the only notable data.
• Plenty of Fed speakers this afternoon, including Fed Daly, Evans, Bowman and Williams.
• Dec Bund futures (RX) steady at at 171.69 (L: 171.59 / H: 171.81)
• Germany: The 2-Yr yield is up 0.4bps at -0.692%, 5-Yr is down 0.2bps at -0.634%, 10-Yr is down 0.3bps at -0.326%, and 30-Yr is down 0.4bps at 0.163%.
• Dec Gilt futures (G) down 27 ticks at 127.9 (L: 127.8 / H: 128.14)
• UK: The 2-Yr yield is up 2.4bps at 0.234%, 5-Yr is up 2.3bps at 0.42%, 10-Yr is up 1bps at 0.754%, and 30-Yr is down 0.6bps at 1.074%.
• Dec BTP futures (IK) up 5 ticks at 153.29 (L: 153.06 / H: 153.42)
• Dec OAT futures (OA) up 3 ticks at 168.03 (L: 167.88 / H: 168.15)
• Italian BTP spread down 0.5bps at 107bps
• Spanish bond spread down 0.9bps at 68bps
• Portuguese PGB spread down 0.8bps at 57.2bps
• Greek bond spread down 1.2bps at 119.4bps