EGB/GILT - Pare some losses post US Services PMI

EGBs have pared some of their losses this afternoon, post the US PMI services miss.

• But markets have been less volatile today, as we close out the week, and focus turns to the FOMC and Month End next week.
• BTP have outperformed and trade tighter against the German 10yr, by 2bps
• Gilts have followed suit, but still trade in negative territory.
• Some desk noted likely short cover, squaring as we head into the weekend.
• Looking ahead, after market rating from Moody's on Cyprus, and DBRS on ESFS, ESM
• Sep Bund futures (RX) down 4 ticks at 175.9 (L: 175.56 / H: 175.95)
• Germany: The 2-Yr yield is down 0.7bps at -0.727%, 5-Yr is up 0.2bps at -0.7%, 10-Yr is up 0.9bps at -0.417%, and 30-Yr is up 0.9bps at 0.062%.Sep
• Gilt futures (G) down 7 ticks at 129.61 (L: 129.31 / H: 129.7)UK: The 2-Yr yield is up 0.8bps at 0.077%, 5-Yr is up 1.1bps at 0.277%, 10-Yr is up 1.4bps at 0.58%, and 30-Yr is up 0.1bps at 1.003%.
• Sep BTP futures (IK) up 24 ticks at 154.07 (L: 153.73 / H: 154.13)
• Sep OAT futures (OA) up 3 ticks at 161.78 (L: 161.47 / H: 161.79)
• Italian BTP spread down 1.8bps at 104.5bps
• Spanish bond spread down 2.6bps at 68.6bps
• Portuguese PGB spread down 1.6bps at 61bps
• Greek bond spread down 1.7bps at 108.3bps