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EGB/Gilt - Holding onto gains

BONDS
  • EGB and Bund have hold onto gains after being better offered this morning.
  • Although ranges are quite wide, volumes have been on the lower side, with mostly Fast Money play,.
  • Prop desks and locals, short covering, short term play.
  • German 30yr yield traded at lowest since 31st August.
  • Bund traded just short of next resistance at the next yield support -0.239% circa 171.37 area, printed 171.32 high.
  • Peripherals sees Greece 3.5bps wider, while Italy trade flat against the German 10yr
  • Gilts have lagged, which caused the Gilt/Bund spread to widen by 2.9bps, after we tested tightest levels since mid September yesterday
  • Looking ahead, BoE Broadbent, Bailey, ECB Schnabel, Fed Daly and Kashkari are still set to speak

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