EGB/Gilt - Holds onto their gains

EGBs have held onto their gains this afternoon, also helped by the US Durable Goods miss, although the data saw a higher revision.

• Safer haven have been favoured, but initial yield support in Bund at -0.442% has held, with the contract printing at 176.34 high at the time of typing.
• Peripheral spreads are wider against the German 10y, with Italy by 1.7bp.
• Gilts curve has bull flattened, and the 5/30s now trade at lowest levels since 14/07/20, at 68.533.
• Gilts have nonetheless underperformed versus the Bund, and the spread has moved 1bp wider on the session.
• Looking ahead, we get the US 5yr note, and after market, earnings from Alphabet, Visa, Microsoft, Apple and Starbucks.
• All the attention turns to the FOMC tomorrow.
• Gilt futures are up 0.15 today at 129.81 with 10y yields down -1.1bp at 0.560% and 2y yields unch at 0.075%
• Bund futures are up 0.41 today at 176.24 with 10y Bund yields down -2.0bp at -0.439% and Schatz yields down -1.0bp at -0.746%
• BTP futures are up 0.13 today at 154.19 with 10y yields down -0.4bp at 0.625% and 2y yields up 0.7bp at -0.440%.
• OAT futures are up 0.18 today at 161.85 with 10y yields down -0.9bp at -0.87% and 2y yields down -0.5bp at -0.702%.