Free Trial

EGB/Gilt: Pushing Higher

BOND SUMMARY

European government bonds have rallied and curves have bull flattened alongside a mixed performance for equities.

  • Gilts have outperformed, particularly at the long end where yields are 8bp lower on the day.
  • Bunds have posted decent gains with yields 1-6bp lower across the curve.
  • The OAT curve has similarly bull flattened with the 2s30s spread narrowing 5bp.
  • UK monthly GDP came in marginally below expectations at 2.9% 3m/3m (3.0% consensus).
  • Following of period of intensifying tensions between the UK and the EU over the Northern Ireland protocol, Brussels is reported to be considering proposals aimed at reducing bureacracy around checks on goods crossing the border. However, the role of the ECJ - a key sticking point for Westminster - appears to remain off the table in discussions.
  • Supply this morning came from the UK (Gilt, GBP500mn), Germany (Bund, EUR816mn allotted) and Italy (BTPs, EUR6.5bn).

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.