EGB/Gilt: Mixed Trading

It has been a relatively mixed session so far with core European sovereign bond markets trading weaker, albeit with price action relatively contained, while periphery EGBs have firmed and alongside uneven trading in European equities.

• The gilt curve has flattened slightly on the back of softer trading at the short end and incremental gains the long end.
• Bunds now trade close to unch on the day with the curve flat. Last yields: 2-year -0.6961%, 5-year -0.6246%, 10-year -0.2863%, 30-year 0.2645%.
• It is a similar story OATs which trade in line with yesterday's close.
• BTPs have firmed slightly with yields up to 1bp lower on the day and the curve bull flattening.
• Data published this morning showed that the UK economy expanded faster than initially expected in the fourth quarter 1.3% vs an initial estimate of 1.0%). Elsewhere, French and Italian preliminary CPI data for March was a touch weaker than expected.
• After the German government announced on Tuesday that the AstraZeneca vaccine should only be used on people aged over 60, the UK government today reiterated its support for the Jab with Communities Secretary Robert Jenrick stating that the government is "100 percent" confident in the efficacy of the vaccine.
• Germany and France are reportedly in discussion with Russia bout the potential supply of the Sputnik Covid vaccine.
• Supply this morning came from Germany (Bund, EUR2.070bn allotted) and Greece (Bills, EUR812.5mn)