EGB/Gilt - Recession fears take hold

EGBs and Bund have continued to rally this afternoon, on the risk off tone, with looking for safer Haven core Bonds and the USD.

• Most of the action has been in FX, with a relentless bid in the Greenback, on recession fears.
• Bund is up 185 ticks and off the high, after the US Factory Orders beat expectations.
• Bund trades in a 252 ticks range, on low volumes, as Real Money stays on the sideline.
• Volumes run at circa 60%.
• Peripherals are all wider, with Italy in the lead by 8.5bps.
• Gilt has traded mostly inline with Bund, up 137 ticks at the time of typing, translating in a flat Gilt/Bund spread.
• Looking ahead, BoE Silvana Tenreyro speaks on a panel at the Qatar Center for Global Banking and Finance 2022.
• Sep Bund futures (RX) up 179 ticks at 150.9 (L: 148.72 / H: 151.19)
• Germany: The 2-Yr yield is down 16.1bps at 0.457%, 5-Yr is down 14.1bps at 0.903%, 10-Yr is down 11.9bps at 1.214%, and 30-Yr is down 11.3bps at 1.523%.
• Sep Gilt futures (G) up 128 ticks at 115.99 (L: 114.6 / H: 116.24)
• UK: The 2-Yr yield is down 9.6bps at 1.709%, 5-Yr is down 11.5bps at 1.739%, 10-Yr is down 12bps at 2.076%, and 30-Yr is down 8.1bps at 2.486%.
• Sep BTP futures (IK) up 71 ticks at 124.47 (L: 123.58 / H: 124.65)
• Sep OAT futures (OA) up 133 ticks at 140.15 (L: 138.5 / H: 140.4)
• Italian BTP spread up 6.9bps at 198.1bps
• Spanish bond spread up 3.5bps at 111bps
• Portuguese PGB spread up 4bps at 110.9bps
• Greek bond spread up 3.3bps at 220.4bps