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EGB/Gilt - Edges back in the green

BONDS
  • EGBs and Bund have recovered from their sessions low, on likely short term short cover and squaring.
  • The 1% Yield held as we start a new week, and the 10yr Yield now trades at 0.943%.Despite some wide range, volumes have been on the low side, which has helped exacerbate the moves.
  • Peripheral spread are wider, with Italy in the lead, by just 1.5bp.
  • Gilt has traded in line with the German 10yr, translated by a flat Gilt/Bund spread.
  • Looking ahead, BOE's Bailey, Ramsden, Haskel and Saunders answer questions from the Treasury Committee.
  • Tomorrow sees the EU prelim GDP, Wednesday, the UK April CPI, and Final EC CPI.
  • Gilt futures are down -0.02 today at 120.22 with 10y yields up 0.1bp at 1.743% and 2y yields down -0.5bp at 1.227%.
  • Bund futures are up 0.12 today at 153.88 with 10y Bund yields down -0.1bp at 0.943% and Schatz yields up 2.6bp at 0.124%.
  • BTP futures are down -0.06 today at 129.62 with 10y yields up 0.7bp at 2.856% and 2y yields up 1.8bp at 0.773%.
  • OAT futures are up 0.12 today at 146.28 with 10y yields down -0.3bp at 1.455% and 2y yields up 1.6bp at 0.120%.

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