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EGB/Gilt - Long end Germany still leads higher

  • EGBs and Bund took they lead from the German 30yr long end.
  • Buxl extended higher again today, a continuation of a similar price action seen yesterday.
  • US PPI was a miss/inline data, and this underpinned Govies this afternoon.
  • Nonetheless, volumes have been on the lower side, hinting that most big desks (RM), have been mainly watching from the sideline.
  • Peripheral spread are mixed, with Italy 1.8bp tighter and Greece 1.5bp wider.
  • Gilt have traded inline with Germany and the Gilt/Bund spreads sit 0.3bp wider at the time of typing.
  • Looking ahead, Senate Banking holds Brainard nomination hearing, which is ongoing.
  • Statement is known, focus will be on Q&A
  • Other speakers include Fed Barkin and Evans
  • Gilt futures are up 0.26 today at 123.61 with 10y yields down -2.3bp at 1.114% and 2y yields down -3.3bp at 0.765%.
  • Bund futures are up 0.40 today at 170.62 with 10y Bund yields down -2.6bp at -0.87% and Schatz yields down -0.9bp at -0.605%.
  • BTP futures are up 0.45 today at 146.59 with 10y yields down -4.5bp at 1.217% and 2y yields down -0.3bp at -0.111%.
  • OAT futures are up 0.37 today at 162.71 with 10y yields down -2.7bp at 0.294% and 2y yields up 0.2bp at -0.637%.

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