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EGB/Gilt - New multi year high Yield in Germany

BONDS
  • Another busy afternoon session for EGBs and Bund, with Yields continuing to rise, but volumes are still somewhat limited.
  • German 10yr Yield reached the highest level since 08/08/14, but futures have now bounced off their lows, as desk squares and cover positions heading towards the end of the European session.
  • With Gilt futures holding the Gilt/Bund spread has tightened another 7bps, lowest since February 2021.
  • Next target would be seen at 26/01/21 low 79.66.
  • Looking ahead, still plenty of speakers scheduled, with BoE Tenreyro, Fed Kashkari, Bostic and ECB Rehn.
  • After markets, rating from Moody on Ireland and Fitch on Portugal.
  • Gilt futures are down -0.10 today at 117.96 with 10y yields down -0.1bp at 1.962% and 2y yields down -6.6bp at 1.467%.
  • Bund futures are down -1.03 today at 151.52 with 10y Bund yields up 6.2bp at 1.104% and Schatz yields up 3.3bp at 0.311%.
  • BTP futures are down -0.98 today at 126.83 with 10y yields up 7.4bp at 3.111% and 2y yields up 6.0bp at 1.046%.
  • OAT futures are down -0.97 today at 143.90 with 10y yields up 5.8bp at 1.630% and 2y yields up 3.6bp at 0.303%.

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