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EGB/Gilt - Govies extend their falls

BONDS
  • EGBs and Bund have continued to fall today, a continuation since Wednesday.
  • German 10yr Yield test to 2.10% in Yield at the time of typing.
  • Further push lower in Bund future would open to 2.13% = 138.50 (61.8% retrace 28th September/October rally).
  • Peripheral spreads are tighter, with Portugal in the lead, by 3bps.
  • Gilt has also fallen throughout the day, down over 240 ticks at the time of typing.
  • Given the moves in Bund and Gilt, the spread has widened by over 10bps, and back above 210bps.
  • Looking ahead, Fed Evans, Cook, Kahskari, Waller Mester, and BoE Haskel are still scheduled.

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