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EGB/Gilt - Italy outperforms

BONDS
  • EGBs and Bund are mostly off their highs, with Equities finding a bid and extending gains from the US Cash open.
  • BTP is the standout and still outperforms and is well in the green at the time of typing.
  • All peripheral spreads are tighter against the German 10yr, Italy by 7.3bps and Greece by 5bps.
  • Gilt has today traded inline with Bund, with most of the volumes is focused into rolling position into September.
  • Gilt roll is running at 71% completion.
  • Looking ahead, Fed Brainard, Daly, ECB Centeno and de Cos are the remaining speakers.
  • Gilt futures are down -0.18 today at 118.43 with 10y yields up 1.9bp at 1.927% and 2y yields down -1.7bp at 1.399%.
  • Bund futures are down -0.27 today at 153.65 with 10y Bund yields up 1.9bp at 0.968% and Schatz yields down -2.8bp at 0.302%.
  • BTP futures are up 0.43 today at 129.32 with 10y yields down -4.9bp at 2.900% and 2y yields down -7.8bp at 0.807%.
  • OAT futures are down -0.13 today at 146.00 with 10y yields up 0.5bp at 1.486% and 2y yields down -3.2bp at 0.186%.

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